Much noise is currently being made about the state of the Greek economy, the stabilisation of public finances, the expected end of recession and the return to growth. The Greek government is presenting the situation as light at the end of the tunnel and as a vindication of the policies followed. The EU is also gradually beginning to claim that ‘austerity works’, though the IMF appears to be much more sceptical. How much truth is there in all this?

(In order to read this article in full you need a subscription to flassbeck-economics. Subscribers will find the full version on our homepage.)