The accomondation hypothesis in Greece: a tri-variate granger-causality aproach
(EL)
The accomondation hypothesis in Greece: a tri-variate granger-causality aproach
(EN)
Καρασαβόγλου, Αναστάσιος
Κατρακιλίδης, Κωνσταντίνος
This paper with title "The Accommodation Hypothesis in Greece. A tri-variate Granger-Causality
Approach" investigates empirically the causal relationship between money growth, budget deficits and
inflation in Greece employing a tri-variate error-correction model. The causal relationship between
money, deficits and inflation is explored using three alternative definitions for money: high-powered, M l
and M2 definitions of money stock. The results support the accommodation hypothesis and provide
evidence that deficits are inflationary when monetized.
(EN)
