The accomondation hypothesis in Greece: a tri-variate granger-causality aproach

Αναστάσιος Καρασαβόγλου, Κωνσταντίνος Κατρακιλίδης


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.


Economic growth; Budgetary expenditure

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η δικτυακή πύλη της ευρωπαϊκής ένωσης ψηφιακή ελλάδα ΕΣΠΑ 2007-2013