Foreign and public deficits in Greece: In search of causality

Arbeitspapier

This paper analyzes the trajectories of the Greek public deficit and sovereign debt over the last three decades and their connection to the political and economic environment, paying special attention to the causality between the public and the foreign deficit. The authors argue that, from 1980 to 1995, causality ran from the public deficit to the foreign deficit but has since reversed, a result of the European monetary unification process and the adoption of the common currency. This hypothesis is tested and verified econometrically using the Granger causality and cointegration analyses.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 771

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policy ; International Investment; Long-term Capital Movements ; International Lending and Debt Problems ; Open Economy Macroeconomics
• Subject: Greece ; crisis ; public debt ; twin deficits ; imbalances

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Nikiforos, Michalis ; Carvalho, Laura ; Schoder, Christian
• Event: Veröffentlichung
• (who): Levy Economics Institute of Bard College
• (where): Annandale-on-Hudson, NY
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/79500
• Last update: 10.03.2025, 11:45 AM CET