The Macroeconomics of the Greek Depression / Gabriel Chodorow-Reich, Loukas Karabarbounis, Rohan Kekre.

Format:

Book

Author/Creator:

Chodorow-Reich, Gabriel.

Contributor:

National Bureau of Economic Research.

Karabarbounis, Loukas.

Kekre, Rohan.

Series:

Working Paper Series (National Bureau of Economic Research) no. w25900.

NBER working paper series no. w25900

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2019.

Summary:

Greece experienced a boom until 2007, followed by a collapse of unprecedented magnitude and persistence. We assess the sources of the boom and the bust, using a rich estimated dynamic general equilibrium model. External demand and government consumption fueled the boom in production, whereas transfers fueled the boom in consumption. Different from the standard narrative, wages and prices declined substantially during the bust. Tax policy accounts for the largest fraction of the bust in production, whereas uninsurable risk accounts for the bust in consumption and wages. We assess how the composition of fiscal adjustment and bailouts affected the crisis.

Notes:

Print version record

May 2019.