Macroeconomic Policy and the External Constraint in the Dependent Economy: The Case of Greece
George Alogoskoufis ()
No 330, CEPR Discussion Papers from C.E.P.R. Discussion Papers
In the paper I examine the trade-offs between internal and external balance and the role of macroeconomic policy in Greece. I estimate and test versions of the two principal open economy macromodels: the imperfect-substitutes, one-sector model, and the two-sector model with nontraded goods. Both are real general equilibrium models that highlight the pivotal role of wage and price setting for the determination of output, competitiveness and external balance. The results are unfavorable to the better-known imperfect-substitutes model, which is used more widely as the basis for modeling aggregate fluctuations in the main industrial economies.
Keywords: Economic Fluctuations; Exchange Rates; Macroeconomic Policy (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at email@example.com
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:330
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... pers/dp.php?dpno=330
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().