Link to the University of Pittsburgh
Link to the University Library SystemContact us link
AEI Banner

Greece and the Troika - Lessons from international best practice cases of successful price (and wage) adjustment. CEPS Working Document No. 2017/05, May 2017

Belke, Ansgar and Gros, Daniel. (2017) Greece and the Troika - Lessons from international best practice cases of successful price (and wage) adjustment. CEPS Working Document No. 2017/05, May 2017. [Policy Paper]

[img] PDF - Published Version
Download (947Kb)

    Abstract

    This paper reviews cases of successful price and wage adjustment, which are often regarded as constituting best practice, in Australia, Latvia and the German new states and contrasts them with the Greek experience under the Troika programmes. Latvia stands out as having had the quickest adjustment in wages. By contrast, before the crisis, Greek wages appeared to have been largely insensitive to labour market conditions but this changed with the programme. We find that the reaction of wages to unemployment in Greece under the programme was similar to that observed in Germany and Portugal (a case that has attracted less attention). A priori, it is likely that the change in wage behaviour in Greece was due to the labour market reforms imposed under the programme. But this cannot be proven beyond doubt.

    Export/Citation:EndNote | BibTeX | Dublin Core | ASCII (Chicago style) | HTML Citation | OpenURL
    Social Networking:
    Item Type: Policy Paper
    Uncontrolled Keywords: Phillips curves, price and wage adjustment, internal devaluation, Australia, Greece, Latvia, Portugal, West vs. East Germany
    Subjects for non-EU documents: Countries > Greece
    EU policies and themes > Policies & related activities > economic and financial affairs > general
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Centre for European Policy Studies (Brussels) > CEPS Working Documents
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 30 May 2017 09:42
    Number of Pages: 23
    Last Modified: 30 May 2017 09:42
    URI: http://aei.pitt.edu/id/eprint/87753

    Actions (login required)

    View Item

    Document Downloads