Greece and the Troika: Lessons from international best practice cases of successful price (and wage) adjustment

Arbeitspapier

This paper reviews cases of successful price and wage adjustment, which are often regarded as constituting best practice, - Australia, Latvia and the German new states and contrasts them with the Greek experience under the Troika Programs. Latvia stands out as having had the quickest adjustment in wages. By contrast, before the crisis, Greek wages appeared to have been largely insensitive to labour market conditions but this changed with the program. We find that the reaction of wages to unemployment in Greece was under the program similar to that observed in Germany and Portugal (a case, which has attracted less attention). A priori it is likely that the change in wage behaviour in Greece was due to the labour market reforms imposed under the program. But this cannot be proven beyond doubt.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ROME Discussion Paper Series ; No. 17-07

Classification and Topics

• Classification: Wirtschaft ; Price Level; Inflation; Deflation ; Macroeconomic Aspects of International Trade and Finance: Other
• Subject: Phillips curves ; price and wage adjustment ; internal devaluation ; Australia ; Greece ; Latvia ; Portugal ; West vs. East Germany

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Belke, Ansgar ; Gros, Daniel
• Event: Veröffentlichung
• (who): Research On Money in the Economy (ROME)
• (where): s.l.
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/187453
• Last update: 10.03.2025, 11:42 AM CET