EconPapers    
Economics at your fingertips  
 

Exchange-Rate Regimes, Political Parties and the Inflation-Unemployment Tradeoff: Evidence from Greece

George Alogoskoufis (), Dong-Ho Lee and Apostolis Philippopoulos ()

Open Economies Review, 1998, vol. 9, issue 1, 39-51

Abstract: We use Greek data during 1960–1994 to test and estimate a model in which wage inflation, price inflation and unemployment depend on the exchange rate regime, the identity of the political party in power and whether an election is expected to take place. We respect the Lucas critique and take into account the statistical properties of the data. The main results are: (i) The exchange rate regime matters for inflation. After the fall of the Bretton Woods regime in 1972, there is a Barro-Gordon type inflation bias due to the inability of all policymakers to precommit to low inflation. (ii) There are no Barro-Gordon type partisan differences in inflation or unemployment. Copyright Kluwer Academic Publishers 1998

Keywords: exchange rates; inflation; political business cycles; unit roots (search for similar items in EconPapers)
Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1023/A:1008275222924 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Exchange Rate regimes, Political Parties, and the Inflation-Unemployment Tradeoff: Evidence From Greece (1997)
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:kap:openec:v:9:y:1998:i:1:p:39-51

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11079/PS2

DOI: 10.1023/A:1008275222924

Access Statistics for this article

Open Economies Review is currently edited by G.S. Tavlas

More articles in Open Economies Review from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-07-06
Handle: RePEc:kap:openec:v:9:y:1998:i:1:p:39-51