Here is a very interesting paper on the evolution of Greek economic policy. Here is an excerpt from the summary:
For twenty years up to 1974, Greece enjoyed rapid growth, high investment and low inflation; during the next twenty years, growth and investment collapsed and inflation became high and persistent.
After 1974, debt and deficits rose sharply as well, and later EU transfers helped postpone the necessary fiscal adjustments. At this same time Greece was becoming more democratic, in part because the previous autocratic arrangements were collapsing. The figure on p.150, representing the difference between the two periods, is a knockout. And after 1974, the average rate of gdp growth goes from 7.1 percent to 2.1 percent.
The full reference is “The Two Faces of Janus: Institutions, Policy Regimes and Macroeconomic Performance in Greece,” George Alogoskoufis, Economic Policy, Vol. 10, No. 20 (Apr., 1995), pp. 149-192.
Hat tip to the Marginal Revolution.