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Challenging the Raison d’etre of Internal Devaluation in the Context of the Greek Economy

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  • Constantinos Alexiou

    ()
    (School of Management, Cranfield University, UK)

  • Joseph G. Nellis

    ()
    (School of Management, Cranfield University, UK)

Abstract

This paper provides a critical assessment of the austerity measures that are being implemented in the crisis-stricken countries of the Eurozone, and in particular, the implications of internal devaluation for the Greek economy. The theoretical underpinnings and phases of internal devaluation are explored. A detailed statistical analysis of key macroeconomic indicators pertaining to the Greek economy is carried out. Alternatives to internal devaluation are proposed in this paper, laying the foundations for a reassessment of the policy of austerity and the implications for recovery and sustainability of economic activity in Greece and other countries of the Eurozone.

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Bibliographic Info

Article provided by Savez ekonomista Vojvodine, Novi Sad, Serbia in its journal Panoeconomicus.

Volume (Year): 60 (2013)
Issue (Month): 6 (December)
Pages: 813-836

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Handle: RePEc:voj:journl:v:60:y:2013:i:6:p:813-836

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Web page: http://www.panoeconomicus.rs/

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Keywords: Internal devaluation; Greek economic crisis; Austerity; Eurozone;

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