Logo
Munich Personal RePEc Archive

Currency Devaluation, External Finance and Economic Growth: A Note on the Greek Case

Mariolis, Theodore (2013): Currency Devaluation, External Finance and Economic Growth: A Note on the Greek Case.

[thumbnail of MPRA_paper_45257.pdf]
Preview
PDF
MPRA_paper_45257.pdf

Download (233kB) | Preview

Abstract

This paper combines dynamic input-output price models with Thirlwall’s extended model of balance of payments constrained growth to estimate the effect of a switch to drachma on domestic income. The findings suggest that a return to national currency would not necessarily deepen the recession, although a rather large nominal devaluation, i.e. in excess of 57%-60%, is necessary for the recovery.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.