Erotokritos Varelas

Money supply, consumption and deregulation: the case of Greece

This paper investigates empirically the impact of monetary deregulation that occurred in 1988 on the relationship betwen consumption and money supply in Greece. The results provide evidence that the deregulation has significantly affected the behaviour of consumption.

Permanent income and credit rationing in the open economy multiplier/accelerator model: An exercise for the developing countries case

Abstract A multiplier/accelerator macroeconomic model incorporating the permanent income hypothesis in private consumption, financial constraints in private investment, and a government that attempts fiscal expansions with tight money are examined. This macroeconomic framework could depict the developing countries case. Stability conditions and simulations results show that government actions could be destabilizing if consumption patterns are closer to the Keynesian archetype than to the permanent income hypothesis.

Quantity versus Price Bank Competition and Macroeconomic Performance given Bank Concentration

Abstract This paper elaborates upon the following three theses: First, given bank sector concentration, the other aspect of this sector that matters for the overall economy is that of price vs. quantity competition by itself. Second, the macroeconomic performance of price competition is superior, enhancing the tax base and bank profit, capitalizing additionally the banks upon public debt induced instability, which the policymaker can minimize through Taylor rule. And, third, the ultimate link between banking competition and macroeconomic performance is the bank regulation shaping bank operation in accordance with the financial needs of fiscal policy.