Creative Crisis in Democracy and Economy

Developments across the millennia suggest that, even though democracies and free market economies are continuously challenged by crises and disturbances, such as natural disasters, wars, or technological revolutions, in the countries where they take roots civil liberties deepen and per capita prosperity increases. To substantiate this claim analytically, the authors emphasize the principles that make free markets a sine qua non condition for democracy and study the nature of the relationship between free market institutions and economic growth. By examining the operating principles, outcomes and challenges experienced by contemporary democracies, many lessons are drawn with regard to how governments should act in order to avoid the pitfalls inherently associated with representative democracy. To illustrate the dangers of deviating from these principles, the authors apply their findings to the Greek democracy and economy since the Second World War.

George C. Bitros is Professor of Economics, Emeritus, Department of Economics, Athens University of Economics and Business. He obtained his Ph.D. in economics from New York University in 1972 and worked as Senior Research Associate in the Research Department of the Bank of Greece and as Professor of Economics at the Athens University of Economics and Business. He has published extensively in distinguished scholarly journals, and has authored and co-edited books with international and Greek publishers. He has served as research associate in the National Bureau of Economic Research (USA) and has held advisory posts in government, government commissions and major corporations. He continues to serve as referee for international and Greek journals. Anastasios D. Karayiannis was Professor of Economics in the Department of Economics of the University of Piraeus. His research interests spanned several fields of economics, including the history of Economic thought, the Methodology of Economics and Entrepreneurship. His contributions to these fields comprise 11 books in Greek language and over 50 papers published in highly esteemed international journals. Additionally, in recent years, he contributed numerous reviews and comments in Greek periodicals and newspapers.