Debt in Greece

Greece, the problem child within the European Union in terms of financial stability, has relied on IMF, European Central Bank, and the European Commission bailouts and financial aid. In 2015, Greece had an unemployment rate of a staggering 25%, 15% higher than the average unemployment rate of the European Union. Based on theories we learned in IPE concerning unemployment, the high levels of unemployment means that the supply of workers is high, and the wages should be lower. In theory, this cheaper labor would lead to higher demand for labor, and eventually lower unemployment. However, in order for this process to work, certain institution must be in place to foster the supply of work itself. The article discusses the bailout conditions for Greece to "overhaul its economy by streamlining the government, ending tax evasion and making Greece an easier place to do business", all steps to promote an environment that supports an increase in jobs within Greece. However, even with these steps, Greece's problems are far from over. They have already been reduced to their last resort; IMF bailout, and given the current trend of Greece's economy, lenders are weary due to fear of default, and interest rates are bound to be high. The path ahead for Greece is difficult to say the least, but with pressure from the IMF to clean up their institutions and monetary policies, Greece's economy still has hope.