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A Model to Deal with Aggregate Supply and Demand Imbalances: The Case of Greece

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  • Albani, Maria
  • Stournaras, Yannis

Abstract

The effort to achieve the convergence criteria and the participation in the euro zone has coincided with a period of high, domestic-demand led growth in the Greek economy, continuing fiscal imbalances, a booming current account deficit, and relatively high unemployment. The economy needs rebalancing both on the demand and the supply sides. A model of aggregate supply and demand is constructed to show certain aspects of this rebalancing.

Suggested Citation

  • Albani, Maria & Stournaras, Yannis, 2009. "A Model to Deal with Aggregate Supply and Demand Imbalances: The Case of Greece," The Journal of Economic Asymmetries, Elsevier, vol. 6(1), pages 15-28.
    • Handle: RePEc:eee:joecas:v:6:y:2009:i:1:p:15-28
    DOI: 10.1016/j.jeca.2009.01.003
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    More about this item

    Keywords

    F41; Q43; Real exchange rate; Aggregate supply and demand imbalances; Greece;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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