Mr. Gerakis, economist in the Finance Division, was head of the Productive Services Division of the Research Department of the Bank of Greece, has taught economics at universities in the United States, and is the author of articles in economic journals.
See Graeme S. Dorrance, “The Effect of Inflation on economic Development,” Staff Papers, Vol. X (1963), pp. 1–47.
J. J. Polak, Depreciation to Meet a Situation of Overinvestment (unpublished memorandum, September 19, 1948).
Sidney S. Alexander, “Effects of a Devaluation on a Trade Balance,” Staff Papers, Vol. II (1951–52), p. 273. [Footnote continued on opposite page]
John Spraos, “Stability in a Closed Economy and in the Foreign Exchange Market, and the Redistributive Effect of Price Changes,” Review of economic Studies, Vol. XXIV (1956–57), pp. 161–76.
E. M. Bernstein, “Strategic Factors in Balance of Payments Adjustment,” Staff Papers, Vol. V (1956–57), p. 159.
Raúl Prebisch, “Economic Development or Monetary Stability: The False Dilemma,” Economic Bulletin for Latin America, Vol. VI, No. 1, March 1961, pp. 19–20; and Carlos F. Díaz Alejandro, “A Note on the Impact of Devaluation and the Redistributive Effect,” The Journal of Political Economy, Vol. LXXI (1963), pp. 577–80.
Referred to hereinafter as “domestic consumption,” “home consumption,” or “consumption.”
Unfortunately, it is not possible to measure the changes in the income share of wages and salaries in the period here discussed, because figures on wage and salary payments are not available on a quarterly basis.
For the method used to make this seasonal adjustment, see Appendix (P. 442).
In 1956, 1957, and 1958, GNP at current prices was Fmk 10.3 billion, Fmk 11.1 billion, and Fmk 11.8 billion, respectively. According to the calculations explained in detail in the Appendix, domestic consumption at current prices amounted to Fmk 5.0 billion, Fmk 5.3 billion, and Fmk 5.6 billion.
The conclusion that the fall in domestic consumption fully accounts for the amplitude of the recession is also borne out by the available annual figures. Specifically, in 1956, 1957, and 1958, the index of real gross domestic product (1948=100) was 114, 114, and 112, respectively. The index of domestic consumption (1948=100), calculated as explained in the Appendix, amounted to 110, 107, and 103, respectively.
Central budget revenues in 1956, 1957, and 1958 amounted to Fmk 2.51 billion, Fmk 2.84 billion, and Fmk 2.99 billion, respectively, and central budget expenditures to Fmk 2.62 billion, Fmk 2.84 billion, and Fmk 2.95 billion, leaving a deficit of Fmk 0.11 billion in 1956, a balanced budget in 1957, and a surplus of Fmk 0.04 billion in 1958.