The Greek GDP price level is falling, which will make it even harder for the Greek to pay back their debts. Deflation rears its ugly head – and the ECB has no means to combat this situation! Real GDP in Greece is shrinking at a 5,5% rate, which means that nominal GDP (and therewith tax receipts of the government) is shrinking at an about 8% a year rate – you don’t even need the back of an envelope to do the calculations. Remarkably, Spanish prices still show some increase despite a level of unemployment as high as the Greek level – one economic model does not fit all.
Here you can find some long run data on Greek inflation and money growth.