We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Greece's Three-Act Tragedy: A Simple Model of Grexit vs. Staying Afloat inside the Single Currency Area.
- Authors
Chen, Yu-Fu; Funke, Michael
- Abstract
Against the backdrop of the Greek three-act tragedy, we present a theoretical framework for studying Greece's recent debt and currency crisis. The model is built on two essential blocks: first, erratic macroeconomic policymaking in Greece is described using a stochastic regime-switching model; second, the euro area governments' responses to uncertain macroeconomic policies in Greece are considered. The model's mechanism and assumptions allow either for a Grexit from the euro area or, conversely, the avoidance of Greece's default against its creditors. The model also offers useful guidance to understand key drivers of the long-winded negotiations between the Greek government and the 'institutions'.
- Subjects
MACROECONOMICS -- Government policy; CURRENCY crises; DEBTOR &; creditor; INTERNATIONAL Monetary Fund; EMERGING markets
- Publication
Open Economies Review, 2017, Vol 28, Issue 2, p297
- ISSN
0923-7992
- Publication type
Article
- DOI
10.1007/s11079-016-9421-0