The Empirical Study On The Causes Of Greek Sovereign Debt Crisis

In2009debt crisis broke in the Greek and the crisis quickly spreads to Italy, Spain, Ireland, Cyprus and other euro-zone countries, which made a great impact on the economy in the euro zone and the world economy. Today the European debt crisis is still deteriorating, it caused the adverse effects on the global economy has not yet dispersed, the world economy has still in a slump. From the beginning of the crisis, many domestic and foreign economic scholars have made much research on the root of European debt crisis, They found the outbreak of the debt crisis in Europe result from the long-term accumulation of many contradictions in the process of economic development. The paper regards the Greek as the object of study, then talk about the reason of the debt crises.The Greek sovereign debt crisis is due to the Greek government spending more than their income, long-term government deficit accumulated huge stock of debt, the government is unable to repay debts owed,so the sovereign debt crisis outbreak. The Greek debt crisis quickly spread to other countries of Euro-zone, becomes another global debt crisis after the Dubai debt crisis. a and erode recovery of world economy. At first,we read literature at home and abroad on the sovereign debt crisis, on the basis, we take theoretical analysis of the sovereign debt crisis. Then we talk about the Greek sovereign debt crisis, evolution and influence. Then the paper analyzes on the factors of internal causes and external influence of the Greek debt crisis, found that government spending, domestic consumption, interest payments, exchange rate, the current account balance, the unemployment rate, the rate of economic growth are important economic factors of Greek debt stock. From the perspective of demand, we construct VEC model on the Greek sovereign debt crisis for empirical study, found that domestic consumption, government spending and the current account deficit could significantly and positively influence of Greek debt stock, investment has a reverse effect on the stock of debt.Finally, on the basis of empirical combination and China’s macroeconomic situation, we give reasonable policy suggestions, and prevent the occurrence of debt crisis...