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Original Articles

Current account deficit sustainability: The case of Greece

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Pages 599-603 | Published online: 06 Oct 2010
 

Abstract

The objective of this paper is to investigate the sustainability of the current account deficit in Greece over the 1960–1994 period. The empirical analysis makes use of various unit root and cointegration tests which allow for structural breaks. The results provide evidence in favour of the sustainability of the current account deficit and against a required (and unnecessary) devaluation of the drachma.

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