In turn, higher growth, along with declining fiscal deficits, will cause a reversal of the rise in the debt-to-GDP ratio observed in recent years. Moreover, fiscal discipline will add to saving, thereby supporting private investment and growth potential. These effects may not be visible immediately, but they will materialize and will revitalise the Greek economy.
Some lessons What, then, are the lessons that can be drawn from the crisis? In my view, some of the key lessons concern the limits to the use of fiscal policy and are as follows.