Panicos O. Demetriades
Panicos Demetriades | |
|---|---|
| Born | Panicos Onisiphorou Demetriades January 19, 1959 Limassol, Cyprus |
| Occupation(s) | Economist, academic |
| Years active | 1980s–present |
| Known for | Governor of the Central Bank of Cyprus (2012–2014), Financial economics research |
Panicos Onisiphorou Demetriades (; born 19 January 1959 in Limassol, Cyprus) is a Cypriot economist and holds the title of Emeritus Professor of Financial Economics at the University of Leicester. Between 3 May 2012 and 10 April 2014, he occupied the position of Governor at the Central Bank of Cyprus and participated as a member of the European Central Bank Governing Council. According to RePEc data, he is ranked within the top 2% of economists in Europe. He authored the book A Diary of the Euro Crisis in Cyprus: Lessons for Bank Recovery and Resolution, which chronicles his role in navigating Cyprus’s banking crisis during 2011–2013.
Biography
Demetriades pursued his economics education at the University of Essex, where he achieved a B.A. with first-class honours in 1981, followed by an M.A. with distinction in 1982. He earned his PhD from Cambridge University in 1987, under the supervision of Frank Hahn and Hashem Pesaran, focusing on "Essays on the Costs of Inflation." During his doctoral studies, he was awarded the Stevenson Prize in Economics for his analysis of inflation’s level and volatility. In 2011, he was inducted as a Fellow of the Academy of Social Sciences (FAcSS) in the United Kingdom.
Career
Following completion of his PhD, Demetriades spent five years working within the Economic Research Department at the Central Bank of Cyprus. In 1990, he transitioned to academia by joining the Department of Economics at Keele University, where he was promoted to Reader in Economics by 1996. He then accepted a professorship in Financial Economics at South Bank University in 1997, holding this position for three years. In 2000, he was appointed Professor of Financial Economics at the University of Leicester.
On 3 May 2012, Demetriades was named governor of the Central Bank of Cyprus for a five-year term, which included serving on the European Central Bank Governing Council, overseeing eurozone monetary policy. He resigned prematurely in April 2014 amid disagreements with the government led by Nicos Anastasiades, who had been elected to oversee Cyprus’s bailout starting March 2013. His early resignation was viewed as a blow to central bank autonomy within Europe.
Academic research
Demetriades’s scholarly work primarily investigates the nexus between finance and economic growth, particularly examining how public and private capital productivity interact. His initial research disputed the belief that financial sector expansion alone drives economic growth, highlighting instead the critical role played by robust institutional frameworks. He established that banking activities contribute more significantly to growth than equity financing through stock markets.
In more recent publications, he challenges prevailing opinions about state-owned banks by demonstrating their potential to support financial development and promote economic progress rather than impede it. His studies on public capital counter the conventional 'crowding out' argument often cited to justify reductions in public expenditure; they reveal that government investment can enhance private sector efficiency, stimulate trade and employment, and foster sustainable long-term growth—reflecting Keynesian economic principles.
Although his focus is largely macroeconomic, Demetriades incorporates micro-level data and micro-econometric techniques into his analyses. His work has garnered extensive citations—exceeding 8,000 on Google Scholar—and according to RePEc rankings, he is positioned among the top 1% most-read economists worldwide and ranks within the top 5% based on publication output and citation impact.
Selected scholarly publications
- "The Evolving Landscape of Financial Development," co-authored with Peter L. Rousseau, published in Economics Letters, Elsevier, vol. 141(C), pages 87–90, 2015
- "Reasons Behind Limited Lending by African Banks," in collaboration with Svetlana Andrianova, Badi H. Baltagi, and David Fielding, Oxford Bulletin of Economics and Statistics, vol. 77(3), pages 339–359, 2015
- "Private Investment and Financial Constraints: Findings from a Nonstationary Panel," co-written with Mauro Costantini, Gregory A. James, and Kevin C. Lee, Economic Inquiry, vol. 51(1), pages 248–259, 2013
- "Economic Growth, Institutions, and State Ownership of Banks," with S. Andrianova, Economica, vol. 79(315), pages 449–469, 2012
- "Legitimacy and Origins of Financial Liberalization," alongside Brian Burgoon and Geoffrey R.D. Underhill, European Journal of Political Economy, Elsevier, vol. 28(2), pages 147–161, 2012
- "Financial Development’s Political Economy Roots in Europe and Asia," with S. Andrianova and C. Xu, World Development, 2010
- "Panel Data Evidence on Financial Development and Openness," co-authored with B. Baltagi and S.H. Law, Journal of Development Economics, Vol. 89, 2009
- "Institutions, Government Bank Ownership and Financial Development," written with S. Andrianova and A. Shortland, Journal of Development Economics, Vol. 85, 2009
- "Exchange Rate and Monetary Policy Identification during the Asian Crisis Using Heteroskedasticity," with A. Cipollini and G. Carpole, Journal of International Money and Finance, Vol. 24, 2005
- "What Is Known and What Remains to Be Understood about Finance and Growth," alongside S. Andrianova, Financial Development and Economic Growth, pages 38–65, 2004
- "International Dimensions of Public Infrastructure Investment," co-written with S. Bougheas and E. Morgenroth, Canadian Journal of Economics, Vol. 36, No. 4, 2003
- "Financial Limitations in the South Korean Economic Miracle," with K. Luintel, Journal of Development Economics, Vol. 64, No. 2, April 2001
- "The Role of Stock Markets in Financial Development and Economic Growth," with P. Arestis and K. Luintel, Journal of Money, Credit and Banking, Vol. 33, No. 1, 2001
- "Public Infrastructure Capital’s Intertemporal Effects on Output and Employment: Evidence from Twelve OECD Countries," alongside T. Mamuneas, The Economic Journal, Vol. 110, No. 465, 2000
- "Trade Implications of Infrastructure and Transport Costs," co-authored with S. Bougheas and E. Morgenroth, Journal of International Economics, Vol. 47, No. 1, 1999
- "Evidence on the Direct Costs Imposed by Financial Repression: The Case of India," with K. Luintel, The Review of Economics and Statistics, Vol. 79, No. 2, 1997
- "Evaluating the Relationship Between Financial Development and Economic Growth," alongside P. Arestis, The Economic Journal, Vol. 107, 1997
- "Time Series Analysis on Whether Financial Development Drives Economic Growth: Study across Sixteen Countries," co-written with K. Hussein, Journal of Development Economics, Vol. 51, No.2, 1996