Horvath, Roman; Koprnicka, Kamila - William Davidson Institute, University of Michigan - 2008
and positive output gap seem to contribute to higher inflation differential. Nevertheless, the effect of price convergence … output
gap seem to contribute to higher inflation differential. Nevertheless, the effect of price
convergence on inflation …
2
Due to end-point bias in the HP filter that we use for construction of output gap, we exclude the year 2007 in the …