Learn more about the Greek financial debt crisis.

By Publisher: Khan Academy | Factsheet

Since the late 1990s public spending in Greece was on the rise but revenue generated by the Greek economy did not keep pace. This resulted in a growing government deficit that was not made known to the European Central Bank. When the global economic downturn started in 2007 it added further to the Greek debt crisis and today Greece finds itself having been bailed out by the European Union and the International Monetary Fund. This free online economics course looks at the key causes of how the economy of a modern European country can collapse. Different aspects of the Greek financial debt crisis are discussed, from rising debt-to-GDP ratios, to the fall in real growth resulting in recession. With falling investor confidence, Greece could no longer afford to borrow on the open market. They were bailed out by the EU and IMF with the proviso that the Greek government implement severe austerity measures. The Greek government and their EU partners are still negotiating about how to progress. You will learn about the options that are available including bailout and further austerity measures, debt default, or an exit from the Euro. The issues associated with each of these options are also discussed from both the Greek and EU perspectives. This free online economics course will be of great interest to finance and economics professionals who would like to learn more about the Greek financial crisis and to students interested in world or European economics and politics.