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The Greek Current Account Deficit:Is it Sustainable after all?

Author

Listed:
  • George A. Zombanakis

    (Bank of Greece)

  • Constantinos Stylianou

    (University of Cyprus)

  • Andreas S. Andreou

    (University of Cyprus)

Abstract

The large Greek current account deficit figures reported during the past few years have become the source of increasing concern regarding its sustainability. Bearing in mind the variety of techniques employed and the views expressed as regards the analysis and the assessment of the size of the current account deficit, this paper resorts to using neural network architectures to demonstrate that, despite its size, the current account deficit of Greece can be considered sustainable. This conclusion, however, is not meant to neglect 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.

Suggested Citation

  • George A. Zombanakis & Constantinos Stylianou & Andreas S. Andreou, 2009. "The Greek Current Account Deficit:Is it Sustainable after all?," Working Papers 98, Bank of Greece.
    • Handle: RePEc:bog:wpaper:98
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    References listed on IDEAS

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    7. Alexandros E. Milionis & Evangelia Papanagiotou, 2008. "On the Use of the Moving Average Trading Rule to Test for Weak Form Efficiency in Capital Markets," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 37(2), pages 181-201, July.
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    Cited by:

    1. Vasilis Droucopoulos & Panagiotis Chronis, 2010. "“Assessing market dominance”: a comment and an extension," Working Papers 109, Bank of Greece.
    2. Panagiotis Chronis & George A. Zombanakis, 2016. "An Evaluation of Policies for Fiscal and External Sustainability during the Recent Greek Economic Crisis," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 32-43.
    3. Andreou Andreas S. & Zombanakis George A. & Migiakis Petros M., 2013. "On Defence Expenditure Reduction: Balancing Between Austerity and Security in Greece," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(3), pages 437-458, December.
    4. Dimitrios Sideris, 2009. "Optimum Currency Areas Structural Changes and the Endogeneity of the OCA Criteria: Evidence from Six New EU Member States," Working Papers 99, Bank of Greece.

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    More about this item

    Keywords

    Neural Networks; Current Account Deficit Sustainability;

    JEL classification:

    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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