Why is the Greek economy collapsing? A simple tale of high multipliers and low exports

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Series Details 21 December 2012
Publication Date 21/12/2012
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Abstract:

In an attempt to understand why the Greek economy is collapsing, this Commentary points out two key aspects that are often overlooked – the country’s large multiplier and a bad export performance. When combined with the need for a large fiscal adjustment, these factors help explain how fiscal consolidation in Greece has been associated with such a large drop in GDP.

Source Link http://aei.pitt.edu/38916/1/AC_%26_DG_Greek_Multipliers_%26_Exports[1].pdf
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