Mariolis, Theodore (2013): Currency Devaluation, External Finance and Economic Growth: A Note on the Greek Case.
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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.
Item Type: | MPRA Paper |
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Original Title: | Currency Devaluation, External Finance and Economic Growth: A Note on the Greek Case |
Language: | English |
Keywords: | Drachma Devaluation; Greek Economy; Dynamic Input-Output Price Models; Thirlwall’s Model |
Subjects: | C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C67 - Input-Output Models D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D57 - Input-Output Tables and Analysis E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E11 - Marxian ; Sraffian ; Kaleckian E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E12 - Keynes ; Keynesian ; Post-Keynesian F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics |
Item ID: | 45257 |
Depositing User: | Theodore Mariolis |
Date Deposited: | 20 Mar 2013 04:51 |
Last Modified: | 02 Oct 2019 18:21 |
References: | Bank of Greece (2012) Annual Report for the year 2011 (in Greek), Athens: Bank of Greece. De Clementi, M., Morciano, M., Orlandi, A. and Perrella, R. (1988) Cumulative inflation and dynamic input-output modelling, in: M. Ciaschini (Ed.) (1988) Input-Output Analysis. Current Developments, pp. 149-165, London: Chapman and Hall. Economou, G., Sampethai, I. and Simigiannis, G. (Eds) (2010) The Current Account of Greece: Imbalances and Policy Implications (in Greek), Athens: Bank of Greece. Katsinos, A. and Mariolis, T. (2012) Switch to devalued drachma and cost-push inflation: a simple input-output approach to the Greek case, Modern Economy, 3 (2), pp. 164-170. Malliaropoulos, D. and Anastasatos, T. (2011) Competitiveness, External Deficit and External Debt of the Greek Economy, Eurobank Research: Economy & Markets, 6 (7), April 2011. McCombie, J. S. L. and Thirlwall, A. P. (1999) Growth in an international context. A Post Keynesian view, in: J. Deprez, J. and J. T. Harvey (Eds) (1999) Foundations of International Economics. Post Keynesian Perspectives, London: Routledge. Papazoglou, C. E. (2010) Introduction to International Economics (in Greek), Athens: Symeon. Thirlwall, A. P. (1979) The balance of payments constraint as an explanation of international growth rate differences, Banca Nazionale del Lavoro Quarterly Review, 32 (128), pp. 45-53. Thirlwall, A. P. (2011) Balance of payments constrained growth models: history and overview, PSL Quarterly Review, 64 (259), pp. 307-351. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/45257 |