Institutional Changes in the Euro-Zone and the Greek Debt Crisis

Nicholas K. Tsounis and George Polychronopoulos
Additional contact information
Nicholas K. Tsounis: Technological Institute of Western Macedonia
George Polychronopoulos: Technological Institute of Athens

South-Eastern Europe Journal of Economics, 2014, vol. 12, issue 2, 145-166

Abstract: This study attempts to quantify the effects of the implicit restrictive monetary policy, exercised by the European Central Bank (ECB) in Greece, during the world financial crisis. An autoregressive distributed lags (ARDL) testing approach is used to verify the existence of a long-run relationship between GDP, total money supply and government expenditure in the Greek economy from 2002 to 2013. The main findings suggest that the institutional settings of the ECB should allow the use of monetary policy during periods of monetary crisis. Money supply in the Greek economy is in a positive relationship to the GDP. If the institutional settings of the ECB were different, allowing money supply to remain stable during the crises, a significant portion of the GDP decline would have been averted.

Keywords: Monetary policy; Euro-zone; External Debt; Greece (search for similar items in EconPapers)
JEL-codes: E52 E58 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.asecu.gr/Seeje/issue23/issue23-tsounis-polychronopoulos.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:seb:journl:v:12:y:2014:i:2:p:145-166

Access Statistics for this article

More articles in South-Eastern Europe Journal of Economics from Association of Economic Universities of South and Eastern Europe and the Black Sea Region Contact information at EDIRC.
Bibliographic data for series maintained by Ms. Melina Petromelidou ().