Stylized Characteristics of the Greek Inflation: Some Policy Recommendations
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Speaker
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Professor Nicholas Apergis
Professor in Economics, Department of Banking and Financial Management, University of Piraeus
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Chair
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Dr Vassilis Monastiriotis
Senior Lecturer in the Political Economy of South East Europe, LSE
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Date
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Tuesday, 9 October 2012
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Abstract
Inflation in Greece, a variable that crucially characterizes the international competitiveness of the economy, is one of the most important topics in the ‘policy dialogue’ between country authorities and the IMF.
This is especially the case for an economy with weak international competitiveness as well as weak institutions and capacity, making it particularly difficult to control inflation. Greece cannot sustain inflation above its euro partners, since its international trade volume is heavily affected by inflation differentials between the country and those partners.
This study adds to the relevant literature by attempting to explain inflation dynamics in Greece over the period 1981−2009. It uses three distinct approaches: the inflation persistent hypothesis, the identification of spillover effects among various sectors in the economy through a Vector Autoregressive Model (VAR) and the investigation of the domestic Balassa-Samuelson effect.
Photos
Dr Vassilis Monastiriotis welcoming and introducing Professor Nicholas Apergis
The audience in Cañada Blanch Room during the Q&A session