Deposit Flight , Precautionary Consumption , and Capital Controls : A Tale from Greece ∗

@inproceedings{Petroulakis2017DepositF,
  title={Deposit Flight , Precautionary Consumption , and Capital Controls : A Tale from Greece ∗},
  author={Filippos Petroulakis and Romanos Priftis and Michael Rousakis},
  year={2017}
}
  • Filippos Petroulakis, Romanos Priftis, Michael Rousakis
  • Published 2017
This paper presents an analytical narrative of the later stages of the Greek crisis, focusing on two key events that unfolded during 2014-2016 and set Greece apart from other episodes of sovereign debt crises: the risk of Grexit and the imposition of capital controls on the banking sector. To account for them both, we extend the standard small open economy environment along three dimensions. First, we allow for an informal sector. Second, we allow for a richer menu of assets that include cash… CONTINUE READING