In 2009, due to its large budget deficit of 15.3 per cent, Greece entered into an economic crisis, one among the Member Nations of the European Union. Even after two financial bail-out funds, Greek’s were unable to recover from their debt crisis. Greece debt crisis is still a massive drawback for the euro area, whose currency denominations are in euro, and also to the global economy. An attempt ... [Show full abstract] has made in this paper to provide a macroeconomic perspective on the Greece debt crisis by analyzing its background, its entry into the euro area, macroeconomic performance from entry till date, the reasons for Greek crisis, geopolitical tensions surrounding the bail-out measures and the crisis, and the days ahead for the Greek government. The macroeconomic analysis presented in this paper is based on the major macroeconomic indicators such as inflation rates, long-term interest rates, budget deficit rate, and debt-to-GDP ratio for the time period between 2001 and 2014.
Keywords: Euro Area, Greece, Economic Crisis, Macroeconomic Analysis.