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aggregate consistency condition aggregate demand Alogoskoufis alternative models balance of payments basic balance Basmann Comparative Statics current account deficit Debt/GDP decisions of firms degree of sluggishness demand for non-tradeables deterioration devaluation dynamics effects of exchange elasticities of exports estimation and testing exchange rate policy export and import external balance external debt full employment GDP deflator Greece imperfect substitutes model implies import demand incomes policy inflation labour market lagged living standards log-linear logarithm macroeconomic macroeconomic policy medium term nominal wages non-traded goods model non-traded goods sector open economy output and competitiveness output and price output equation parameters partial adjustment percentage points price equation price level price of traded real exchange rate real wages receipts from abroad relative price sector imperfect substitutes sector model share of imports supply side terms of trade total current receipts tradeables sector traded goods sector unemployment Vage Vith partial wage adjustment wage demands wage indexation wage setting