Moreover, when the aggregate income decreases the total taxes income of the government also decreases and the disposable income remains constant.
It is worth mentioning that the stabilizing policies which have not an automatic character are related to the 'lag' problem, according to which the time of the delay in the detection of the problem or in the decision for intervention and activation of the policy, can contribute in the deterioration of the problem.
The case of Greece
Especially in this period, when Greece is facing several serious socioeconomic problems which have been enlarged due to the global crisis the implementation of a study concerning the investigation of the impact of the IMF, EC and ECB programmes for bailout will be of high contribution for policy makers, not only in Greece but in European Union in general. Greece, as one of the euro zone Member States faces economic problems which make borrowing by the markets not viable. The borrowing from the IMF, EC and ECB seemed to be the last resort borrowers for Greece. On the other hand the conditions under which the loans will be given to Greece will have a serious effect on the future for the entire Greek economy. All of the measures are oriented to the decrease of public deficits but concentrate only to the cuts of wages and salaries for the public servants, the pensioners and the employees of the private sector. This policy is expected to lead to the decrease of the demand site at present which will result in a further depression of the internal economy while in terms of current account for trade is possible to show better performance after the cut of the labour cost. Such expected results make the prognosis for the cost outcome for the entire economy at the completion of the program more interesting.
Before continuing I would like to mention some serious economical-political events from the 1950 up to now which will help us to realize why Greece has so serious problems after the financial crises of 2008.Which was the economic conditions which lead the Greek deficit to be the highest in the Euro Area zone? How is it possible for a small country like Greece to have a public deficit of 300 billion Euros? From where they came from?
However, Greece is not the only country whose budget deficit exceed 3% of the GDP which is a rule among the euro zone nations. But a look at the root of the deficit and the debt is important.
I separate the time periods into four categories.
1)The Greek miracle 1950-1974
After the second World-War and the civil war (1946-1949) the Greek economy was destroyed and (recession period). There were no infrastructure, capitals, investment opportunities. The depreciation of drachma and the hyper-inflation deteriorate the economic situation of the Greek economy. The Marscall plan(1948-1951) and the Truman Doctrine(1947) helped the Greek economy as a large amount of capitals reinforced the Greek economy and in 1950 many macroeconomic variables(like output, investment level) become at the same level as before the second World War. However ,the inflation r eached the 10% and the Greek deficit the 25% of the GDP.(责任编辑：BUG)