Testing Money Supply Endogeneity: The Case of Greece (1975-1998)

Yannis Panagopoulos, Aristotelis Spiliotis
European Research Studies Journal, Volume IX, Issue 1-2, 85-102, 2006
DOI: 10.35808/ersj/150


The main purpose of this paper is to trace whether, for a prolonged period of time (1975-1998), money supply in Greece was endogenously or exogenously determined. In the theoretical part, we briefly report the Orthodox vis- a- vis the post Keynesian views on the issue. From the statistical evidence we conclude that : a) the deregulation process of the late 80’s did not produce any structural break in the Greek monetary aggregates and b) under specific assumptions, money in Greece can be considered as endogenously determined. This implies that in the Greek monetary system the central bank behaves as a lender of last resort.

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