Divergent Inflation Rates in EMU
We analyse the sources of divergent national inflation rates among EMU member countries. At one level, we review the Irish 'outlier' experience; at another, we estimate panel regressions for the 1999-2001 period. We highlight the role played by differential exposure to euro exchange rate movements in explaining inflation divergence. In addition, we find evidence that ouput gaps and a "price level convergence" effect have also been important. We draw some policy conclusions for the accession countries that are hoping to join EMU.
Year of publication: |
2003
|
---|---|
Authors: | Lane, Philip R. ; Honohan, Patrick |
Institutions: | Department of Economics, Trinity College Dublin |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Business Cycles and Macroeconomic Policy in Emerging Market Economies
Lane, Philip R., (2003)
-
Understanding Bilateral Exchange Rate Volatility
Devereux, Michael B., (2002)
-
Monetary-Fiscal Interactions in an Uncertain World: Lessons for European Policymakers
Lane, Philip R., (2002)
- More ...