• What opportunity cost of holding real balances? The case of Greece 1978–1993.

      Apergis, Nicholas; University of Macedonia (Taylor & Francis, 2006-11-02)
      In this paper cointegration techniques have been applied to identify the role of opportunity cost in the demand for real balances in the Greek case and covering the period 1978–93. The results reveal that it is the simultaneous presence of nominal interest rates, the expected inflation and the expected depreciation variables that must be used as proxies for the opportunity cost.