tag:blogger.com,1999:blog-4202640171587061962.post4647514131249668982..comments2023-04-11T13:47:28.049+03:00Comments on macro.tragedy: Is Greece's underperformance compared to sudden stop episodes in other EMs really due to the Euro ?Nickhttp://www.blogger.com/profile/08877745854003049438noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4202640171587061962.post-25326940788901432002017-03-17T00:53:21.916+02:002017-03-17T00:53:21.916+02:00Thank you for the comment. I have included the ser...Thank you for the comment. I have included the services balance into the trade balance figures, maybe I should have named it Goods & Services Balance so that there's no misunderstanding.<br /><br />Greece has failed to recover but who knows how things would be if the anemic 2014 recovery wasn't interrupted but was instead allowed to run its course. Maybe it would have perished but maybe, just maybe, we wouldn't be talking about Greece failing to recover after 3 adjustment programs. Nickhttps://www.blogger.com/profile/08877745854003049438noreply@blogger.comtag:blogger.com,1999:blog-4202640171587061962.post-2805103646771600092017-03-16T19:31:40.467+02:002017-03-16T19:31:40.467+02:00I don't disagree, but..
1) I find the trade b...I don't disagree, but..<br /><br />1) I find the trade balance analysis misleading. Considering Greece's economy is dominated by the tourism sector (i.e. a service), it would be more useful to view the current-account balance of Greece in a long-term framework instead of just trade. Then we could assess the effectiveness of drachma depreciation better. The author only examines the current-account balance of Greece in a short-term framework (a few years before the crisis and a few years after the crisis).<br /><br />2) The point remains that after three stabilization programs Greece has failed to recover.Jim Sliphttps://www.blogger.com/profile/15325962115410722474noreply@blogger.com