Assessing the internal devaluation policy implemented in Greece in an empirical stock‐flow consistent model

Christos Pierros

Metroeconomica, 2021, vol. 72, issue 4, 905-943

Abstract: Αn empirical stock‐flow consistent model is constructed aiming to investigate the impact of the internal devaluation policy on the real GDP, the unemployment rate and the sector financial balances. The private expenditure of the aggregate private sector is affected by functional income distribution, which in turn is determined by the minimum wage and flexible employment, among other factors. The model is then applied on the Greek economy. Findings suggest that the implementation of internal devaluation fueled the destabilizing dynamics at play and hindered the export capacity of the economy through a negative effect of lackluster demand on productivity.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.1111/meca.12352

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:bla:metroe:v:72:y:2021:i:4:p:905-943

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0026-1386

Access Statistics for this article

Metroeconomica is currently edited by Heinz D. Kurz and Neri Salvadori

More articles in Metroeconomica from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().