No. 79. AN EMPIRICAL APPROACH TO THE GREEK MONEY SUPPLY
Y. Panagopoulos, A. Spiliotis. 2005.
The core issue of this paper is to present the way the different schools of economic thought are approaching the money-income relationship (a restricted quantity theory of money approach) as well as the money multiplier model. More analytically, in the theoretical part of our paper we briefly report the arguments between the different post Keynesians schools of thought upon these issues (Accommodationalism, Structuralism, Liquidity Preference and Circuit theory of Money) as well as Monetarism and the New Keynesian view. Then in the statistical part, with the help of advance econometric causality techniques, we are searching for the theory which better “fits the data” in the Greek economy from 1980 to 2000. The results favor the idea that although no particular school is totally prevailing in Greece, Circuitism seems to be the one that is closer to the Greek reality regarding money generation process.