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The Grand Tour: Keynes and Goodwin go to Greece


  • Eduardo A. Haddad
  • Natalia Q. Cotarelli, Thiago C. Simonato, Vinicius A. Vale
  • Jaqueline C. Visentin


The impact of the crisis in the Greek economy was not uniform among the regions, threatening socioeconomic cohesion. In this paper, we explore the concept of the income multiplier in a multi-regional setting, in the context of the Greek recession, showing empirical evidence for the increasing magnitude of the multiplier during the recession period. The main results reveal a complex system of interregional relations on some of whose structural characteristics the cyclical reaction paths of the regions depends. In this case, the use of fiscal instruments to stimulate local activity in the regions may bring about important implications for regional inequality in Greece

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  • Eduardo A. Haddad & Natalia Q. Cotarelli, Thiago C. Simonato, Vinicius A. Vale & Jaqueline C. Visentin, 2018. "The Grand Tour: Keynes and Goodwin go to Greece," Working Papers, Department of Economics 2018_01, University of São Paulo (FEA-USP).
  • Handle: RePEc:spa:wpaper:2018wpecon01

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    2. Eduardo Amaral Haddad & Inácio F. Araújo & Ademir Rocha & Karina Sass, 2022. "Input-Output Analysis of the Ukraine War: A Tool for Assessing the Internal Territorial Impacts of the Conflict," Research papers & Policy papers 1953, Policy Center for the New South.

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    More about this item


    Keynesian multiplier; recessions; Greece; austerity policy; countercyclical regional policy;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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