TITLE:
Switch to Devalued Drachma and Cost-Push Inflation: A Simple Input-Output Approach to the Greek Case
AUTHORS:
Apostolis Katsinos, Theodore Mariolis
KEYWORDS:
Cost-Push Inflation; Drachma Devaluation; Dynamic Input-Output Price Models; Greek Economy; International Competitiveness
JOURNAL NAME:
Modern Economy,
Vol.3 No.2,
March
28,
2012
ABSTRACT: This paper uses simple dynamic input-output price models to estimate the effects of a switch to devalued drachma on the cost-inflation rate in the Greek economy. The findings suggest that the inflationary “pressures” are not too high and, therefore, there is room for trade-balance improvement.