Papadimitriou on Greek Economy, 2017 Budget

The video discusses Greece's financial situation, focusing on the need for additional bailout funds and the completion of the second review of the latest program. It highlights the challenges faced by Greece, including demands for reforms by the IMF and European leaders. The Greek government aims to implement reforms that promote growth and reduce inequality. The budget is based on a 2.7% growth forecast, with no additional austerity measures. The video also addresses the impact of global bond yields on Greece.

What is the significance of completing the second review of Greece's latest program by the end of the year?

• It will allow Greece to receive additional bailout funds.

• It will enable Greece to participate in the European Union.

• It will lead to a reduction in Greece's debt.

• It will result in the removal of all financial restrictions on Greece.

Why does the Greek government consider the primary surplus target of 3.5% unsustainable?

• Because it results in higher taxes for citizens.

• Because it leads to increased foreign investment.

• Because it is incompatible with the economic recovery.

• Because it requires additional loans from the IMF.

What is one of the main differences between the IMF and European leaders regarding Greece's economic recovery?

• The IMF supports a primary surplus of 1.5%, while European leaders do not.

• European leaders think Greece can recover without additional reforms.

• European leaders want Greece to cut its pension system.

• The IMF believes Greece should increase its exports.

What is the Greek government's stance on the reforms proposed by the IMF?

• They plan to reject all IMF proposals.

• They have already implemented all proposed reforms.

• They believe some recommendations are not pro-growth.

• They fully support all IMF recommendations.

What is the Greek government's approach to creating fiscal space?

• Increasing taxes on foreign investments.

• Reducing public sector wages.

• Simplifying and maintaining a constant tax rate.

• Cutting down on social welfare programs.

What growth rate is the Greek budget based on for the coming year?

• 3.5%

• 2.7%

• 1.5%

• 4.0%

How are global bond yields expected to impact Greece?

• They will lead to a decrease in Greece's exports.

• They will increase Greece's borrowing costs.

• They will have no effect on Greece.

• They will result in higher foreign direct investment.