Fuzzy cognitive maps face the question of the Greek current account deficit sustainability
AbstractThis paper offers an alternative approach to policy modeling aiming at considering the question of the Greek current account deficit sustainability using Fuzzy Cognitive Maps (FCM). Given that the large Greek current account deficit figures reported during the past few years have become the source of increasing concern regarding its sustainability and bearing in mind the wide variety of views on this issue, we have chosen to resort to an entirely different technique compared to traditional policy modeling. The paper concludes that despite its size, the current account deficit of Greece can be considered sustainable. This conclusion, however, must not be taken as neglecting the structural weaknesses that lead to such a deficit. In fact, even in the absence of any financing requirements these high deficit figures point to serious competitiveness losses with everything that these may entail for the future performance of the Greek economy.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 38574.
Date of creation: 14 Sep 2009
Date of revision:
Soft Computing; Fuzzy Cognitive Maps; Current Account Deficit Sustainability;
Find related papers by JEL classification:
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
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- Nicholas Apergis & Konstantinos Katrakilidis & Nicholas Tabakis, 2000. "Current account deficit sustainability: The case of Greece," Applied Economics Letters, Taylor and Francis Journals, vol. 7(9), pages 599-603.
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- Sebastian Edwards, 2005. "Is the U.S. Current Account Deficit Sustainable? And If Not, How Costly is Adjustment Likely To Be?," NBER Working Papers 11541, National Bureau of Economic Research, Inc.
- Richard N. Cooper, 2001. "Is the U.S. Current Account Deficit Sustainable? Will It Be Sustained?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(1), pages 217-226.
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