Δυναμική του χρέους, ‘δίδυμα ελλείμματα’ και διεθνής ανταγωνιστικότητα της ελληνικής οικονομίας

Debt dynamics, ‘twin deficits’ and international competitiveness of the Greek economy

Theodore Mariolis () and Κostas Papoulis

MPRA Paper from University Library of Munich, Germany

Abstract: This paper explores the dynamics of the Greek public debt and its relationship with the ‘twin deficits’, that is, the public and current account deficits. By modeling the evolution of these variables and using actual data of the Greek economy, this paper shows that the public debt is unsustainable as the ‘twin deficits’ are expected to persist. The causa causans of this persistence is the erosion of the international competitiveness of the country. Under these circumstances, the contemplation of policies such as reduction in government expenditures and cuts in unit labour costs in the private sector seems to be the only available, although too little too late ‘remedy’.

Keywords: Comparative-absolute advantage; debt dynamics; effective demand; European Monetary Union; Greek economy; international competitiveness; ‘twin deficits’ (search for similar items in EconPapers)
JEL-codes: E11 E12 F34 F41 H6 (search for similar items in EconPapers)
Date: 2010-06
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:23173

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