And all these, despite the impressive progress that Greece has made since the beginning of the crisis in 2010 in the fiscal front, in the banking sector, in social security reform, in unit labour cost competitiveness, and in labour and product market liberalization. Looking at the 2019 Yearbook, my first observation is that little appears to have changed in the last five years.
The open economy version of the transmission mechanism under floating exchange rates runs from interest rates, to nominal exchange rates, to the absolute and relative prices of tradeable goods and eventually to the prices of non-tradeable goods.