Greece: Selected Issues
October 13, 1998
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This Selected Issues paper explores the determinants of Greece’s potential output, an exercise that could shed light on its current cyclical position, as well as on its medium-term growth prospects. To that end, a production function is estimated, with capital and labor as factors of production and time-varying total factor productivity. The estimation results suggest that the output gap has been closing in recent years, with output projected to be slightly above potential in 1998. The paper also explores the impact of changes in the drachma’s exchange rate on inflation.
Subject: Exchange rates, Foreign exchange, Inflation, Labor, Output gap, Potential output, Prices, Production, Real wages, Total factor productivity
Keywords: CR, enterprise, Exchange rates, government, government investment pattern, government investment ratio, government involvement, Inflation, ISCR, Output gap, price inflation, Real wages, Total factor productivity, trend employment, worker government capital
Pages:
108
Volume:
1998
DOI:
Issue:
100
Series:
Country Report No. 1998/100
Stock No:
1GRCEA0011998
ISBN:
9781451816082
ISSN:
1934-7685
