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Testing the credibility of stabilization programmes. Evidence from Greece
Author(s) -
Karfakis Costas,
Sidiropoulos Moïse,
Trabelsi Jamel
Publication year - 2000
Publication title -
international journal of finance and economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 39
eISSN - 1099-1158
pISSN - 1076-9307
DOI - 10.1002/(sici)1099-1158(200004)5:2<165::aid-ijfe120>3.0.co;2-q
Subject(s) - credibility , inflation (cosmology) , economics , macroeconomics , econometrics , monetary economics , political science , physics , theoretical physics , law
This paper tests the size and the diffusion effect of the credibility factors of the stabilization programme implemented in Greece in 1985, by means of a two‐step procedure which focuses on the analysis of the time‐series properties of the parallel market premium and the inflation process. An interesting aspect of the analysis is the evidence that the stabilization plan gained credibility rapidly, and its impact on the inflation dynamics was significant. Copyright © 2000 John Wiley & Sons, Ltd.