Δυναμική Του Χρέους, ‘Δίδυμα Ελλείμματα’ Και Διεθνής Ανταγωνιστικότητα Της Ελληνικής Οικονομίας
[Debt dynamics, ‘twin deficits’ and international competitiveness of the Greek economy]
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’.
|Date of creation:||Jun 2010|
|Date of revision:|
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- Yilmaz Akyüz, 2007. "Debt Sustainability in Emerging Markets: A Critical Appraisal," Working Papers 61, United Nations, Department of Economics and Social Affairs.
- Matteo Formenti, 2008. "Indicators and Tests of Sustainability: The Italian Case," Rivista di Politica Economica, SIPI Spa, vol. 98(6), pages 123-160, November-.
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- Mariolis, Theodore, 2006. "Distribution and Growth in a Multi-Sector Open Economy with Excess Capacity," Economia Internazionale / International Economics, Camera di Commercio di Genova, vol. 59(1), pages 51-61.
- Brewer, Anthony, 1985. "Trade with fixed real wages and mobile capital," Journal of International Economics, Elsevier, vol. 18(1-2), pages 177-186, February.
- Mariolis, Theodore, 2010. "A neo-Ricardian critique of the traditional static theory of trade, customs unions and common markets," MPRA Paper 23088, University Library of Munich, Germany.
- Harck, Soren, 2000. "On the Sustainability Area as a Simplifying Didactic Device," Cambridge Journal of Economics, Oxford University Press, vol. 24(4), pages 505-09, July.
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