Despite rising unemployment and a lack of economic growth,Greece cannot afford to ignore the challenge of controllinginflation.

摘要

Since the beginning of the eurozone crisis, Greece has experienced a sharp fall in GDP and audlarge increase in unemployment. Nicholas Apergis argues that another policy challengeudfacing Greece is also highly significant: controlling inflation. Assessing the inflation dynamicsudwithin the country between 1981 and 2009, he outlines three dynamics important toudunderstanding Greek inflation: inflation persistence, inflation spillovers between sectors of theudeconomy, and the domestic ‘Balassa-Samuelson’ effect.