Ramsey on the Greek crisis and depression

Posted: October 31, 2015 in Educational Material, Grad Macro I Fall 2015-2016
Tags: , , , , ,

Roller coaster

UPDATE 13-11-2015: A new .pdf has been uploaded

I upload here an educational application of the standard Ramsey model of long-run growth, to show that it predicts correctly, in a qualitative sense, what has happened and is still happening in the Greek economy due to the recent crisis and current depression.

Even though the model is concerned with long-run growth rather than with short- and mid-term fluctuations, still it is important to see that by shifting our horizon-focus in economic analysis, we do not end up with incompatible conclusions.

Current Greek Depression and the Ramsey growth model 13-11-2015

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