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.
T. Mariolis and K. Papoulis, “‘Twin Deficits’ and International Competitiveness of the Greek Economy,” In: Greek Scientific Association of Political Economy, Ed., Economic Crisis and Greece (in Greek), Gutenberg, Athens, 2011, pp. 275-289.
T. Mariolis, “Greece, European Union and Economic Crisis (in Greek),” Matura, Athens, 2011.
A. Brewer, “Trade with Fixed Real Wages and Mobile Capital,” Journal of International Economics, Vol. 18, No. 1-2, 1985, pp. 177-186. doi:10.1016/0022-1996(85)90012-1
P. R. Krugman and M. Obstfeld, “International Economics: Theory & Policy,” 3rd Edition, Harper Collins College Publishers, New York, 1994.
P. R. Krugman and M. Obstfeld, “International Economics: Theory & Policy,” 8th Edition, Prentice Hall, Harlow, 2009.
T. Mariolis, “The New International Division of Labour,” In: T. Mariolis and G. Stamatis, Eds., The EMU Epoch: Globalization, EMU, Drachma, Stock Exchange Market (in Greek), Stachy, Athens, 2000.
T. Mariolis, “The Division of Labour in European Monetary Union: Absolute Versus Comparative Advantage,” European Research Studies, Vol. 3, No. 1-2, 2001, pp. 79-90.
S. Parrinello, “The Notion of National Competitiveness in a Global Economy,” In: J. Vint, J. S. Metcalfe, H. D. Kurz, N. Salvadori and P. Samuelson, Eds, Economic Theory and Economic Thought. Essays in Honour of Ian Steedman, Routledge, London, 2009, pp. 49-68.
H. Flassbeck and F. Spiecker, “The Euro—A Story of Misunderstanding,” Intereconomics: Review of European Economic Policy, Vol. 46, No. 4, 2011, pp. 180-187. doi:10.1007/s10272-011-0381-8
G. Economou, I. Sampethai and G. Simigiannis, Eds, “The Current Account of Greece: Imbalances and Policy implications (in Greek),” Bank of Greece, Athens, 2010.
C. Panico, “The Causes of the Debt Crisis in Europe and the Role of Regional Integration,” Working Papers Series, No. 234, Political Economy Research Institute, University of Massachusetts at Amherst, Amherst, 2010.
R. E. Kalman, “A System-Theoretic Critique of Dynamic Economic Models,” In: B. Lazarevic, Ed., Global and Large Scale System Models, Lecture Notes in Control and Information Sciences, Springer, Berlin, Vol. 19, 1979, pp. 3-24.
T. Mariolis, C. Economidis, G. Stamatis and N. Fousteris, “Quantitative Evaluation of the Effects of Devaluation on the Cost of Production (in Greek),” Kritiki, Athens, 1997.
A. Burstein, M. Eichenbaum and S. Rebelo, “Why Are Rates of Inflation So Low after Large Devaluations?” Working Paper 8748, National Bureau of Economic Research Working Papers Series, February 2002. http://www.nber.org/papers/w8748.pdf
P. Sraffa, “Production of Commodities by Means of Commodities. Prelude to a Critique of Economic Theory,” Cambridge University Press, Cambridge, 1960.
I. Steedman, “Production of Commodities by Means of Commodities and the open economy,” Metroeconomica, Vol. 50, No. 3, pp. 260-276. doi:10.1111/1467-999X.00073
United Nations, “Handbook of Input-Output Table. Compilation and Analysis. Studies in Methods,” Handbook of National Accounting, Department for Economic and Social Affairs, Statistics Division, Series F, No. 74, United Nations, New York, 1999.
R. M. Solow, “Competitive Valuation in a Dynamic Input-Output System,” Econometrica, Vol. 27, No. 1, 1959, pp. 30-53. doi:10.2307/1907776
M. Morciano, “Price Dynamics in an Input-Output Model. An Alternative Approach,” Economics Letters, Vol. 14, No. 4, 1984, pp. 363-368. doi:10.1016/0165-1765(84)90012-0
M. De Clementi, M. Morciano, A. Orlandi and R. Perrella, “Cumulative Inflation and Dynamic Input-Output Modelling,” In: M. Ciaschini, Ed., Input-Output Analysis. Current Developments, Chapman and Hall, London, 1988, pp. 149-165. doi: 10.1007/978-94-009-2607-3_10
I. Steedman, “Questions for Kaleckians,” Review of Political Economy, Vol. 4, No. 2, 1992, pp. 125-151. doi:10.1080/09538259200000011
I. Steedman, “Income Distribution, Foreign Trade and the Value-Added Vector,” Economic Systems Research, Vol. 12, No. 2, 2000, pp. 221-230. doi:10.1080/09535310050005716
R. Miller and P. Blair, “Input-Output Analysis: Foundations and Extensions,” Prentice Hall, New Jersey, 1985.
T. Mariolis and A. Katsinos, “Return to Devalued Drachma, Cost-Push Inflation and International Competitiveness: An Input-Output Analysis (in Greek),” Internal Report of the “Study Group on Sraffian Economics”, Department of Public Administration, Panteion University, Mimeo, 2011.
N. Keyfitz and H. Caswell, “Applied Mathematical Demography,” 3rd Edition, Springer, New York, 2005.
I. Stott, S. Townley and D. J. Hodgson, “A Framework for Studying Transient Dynamics of Population Projection Matrix Models,” Ecology Letters, Vol. 14, No. 9, 2011, pp. 959-970. doi:10.1111/j.1461-0248.2011.01659.x
T. Mariolis, “Theoretical Investigation of the Price Response of a Joint Production System to Currency Devaluation,” In: B. Papathanassiou, Ed., Proceedings of the 4th Balkan Conference on Operational Research, Hellenic Operational Research Society, Thessaloniki, Vol. 1, 20-23 October 1997, pp. 244-261.
T. Mariolis, “Pure Joint Production, Income Distribution, Employment and the Exchange Rate,” Metroeconomica, Vol. 59, No. 4, 2008, pp. 656-665. doi:10.1111/j.1467-999X.2008.00320.x
D. Malliaropoulos and T. Anastasatos, “Competitiveness, External Deficit and External Debt of the Greek Economy,” Eurobank Research: Economy & Markets, Vol. 6, No. 7, 2011.
S. Skaperdas, “Seven Myths about the Greek Debt Crisis,” 2011. http://www.socsci.uci.edu/~sskaperd/SkaperdasMythsWP1011.pdf
Research on Money and Finance, “Breaking Up? A Route out of the Eurozone,” RMF Occasional Report 3, 2011. http://www.researchonmoneyandfinance.org/wp-cotent/upoads/2011/11/Eurozone-Crisis-RMF-Report-3-Breaking-Up.pdf
P. Flaschel, S. Luchtenberg and C. Proa?o, “Crisis as Opportunity: Roads towards Social Capitalism,” Bulletin of Political Economy, Vol. 5, No. 1, 2011, pp. 1-40.
J. S. Metcalfe and I. Steedman, “Growth and Distribution in an Open Economy,” In: I. Steedman, Ed., Fundamental Issues in Trade Theory, Macmillan, London, 1979, pp. 201-227.
J. S. Metcalfe and I. Steedman, “Some Long-Run Theory of Employment, Income Distribution and the Exchange Rate,” The Manchester School, Vol. 49, No. 1, 1981, pp. 1-20. doi:10.1111/j.1467-9957.1981.tb00169.x
T. Mariolis, “Distribution and Growth in a Multi-Sector Open Economy with Excess Capacity,” Economia Internazionale/International Economics, Vol. 59, No. 1, 2006, pp. 51-61.
Z. Han and B. Schefold, “An Empirical Investigation of Paradoxes: Reswitching and Reverse Capital Deepening in Capital Theory,” Cambridge Journal of Economics, Vol. 30, No. 5, 2006, pp. 737-765. doi: 10.1093/cje/bei089