Britain and the Greek economic crisis, 1944-1947 : from liberation to the Truman Doctrine
In 1944, the government of newly liberated Greece faced a crisis of staggering proportions, with a devastated economy and a currency undermined by rampant hyperinflation. Anxious to preserve Greece as a friendly 'outpost in South-Eastern Europe', the British provided advisors to help overcome the crisis. Whatever the political motives of the British, their economic advice was largely orthodox and sound, enshrining the only measures likely to provide a long-term solution to the problem of inflation. Nevertheless, successive governments in Athens managed to avoid acting on the advice in the hope that massive amounts of Allied aid would eliminate the need for painful policies, and preferring to adopt palliative measures which allowed wealthy Greeks to protect their assets while the underlying problems remained unaddressed. Exasperated by their lack of success, the British withdrew in early 1947, to be replaced by the Americans. The mixed success of the American advisors over the subsequent year merely confirmed the extensive problems which had earlier thwarted the British efforts. The thesis demonstrates how the inertia of successive Greek governments led to the prolongation of the economic crisis. It also shows
Lykogiannis, Athanasios
Inflation; Hyperinflation
Britain and the Greek economic crisis, 1944-1947 : from liberation to the Truman Doctrine. In 1944, the government of newly liberated Greece faced a crisis of staggering proportions, with a devastated economy and a currency undermined by rampant hyperinflation. Anxious to preserve Greece as a friendly 'outpost in South-Eastern Europe', the British provided advisors to help overcome the crisis. Whatever the political motives of the British, their economic advice was largely orthodox and sound, enshrining the only measures likely to provide a long-term solution to the problem of inflation. Nevertheless, successive governments in Athens managed to avoid acting on the advice in the hope that massive amounts of Allied aid would eliminate the need for painful policies, and preferring to adopt palliative measures which allowed wealthy Greeks to protect their assets while the underlying problems remained unaddressed. Exasperated by their lack of success, the British withdrew in early 1947, to be replaced by the Americans. The mixed success of the American advisors over the subsequent year merely confirmed the extensive problems which had earlier thwarted the British efforts. The thesis demonstrates how the inertia of successive Greek governments led to the prolongation of the economic crisis. It also shows
britain greek economic_crisis liberation doctrine government newly liberate greece face crisis proportion devastate economy currency undermine anxious preserve greece friendly outpost south_eastern europe british provide advisor help overcome crisis whatever political motif british economic advice largely orthodox sound enshrine measure likely provide long_term solution_problem inflation nevertheless successive_government athens manage avoid act advice hope massive amount allied aid would eliminate need painful policy prefer adopt measure allow wealthy greeks protect asset underlie problem remain lack success british replace americans mixed success american advisor subsequent year merely confirm extensive problem earlier british effort demonstrates inertia successive greek government lead economic_crisis also_show