Maria-Dolores, Ramon; Garcia-Solanes, Jose - Econometric Society - 2004
Commission and absorbs more easily supply shocks and Balassa Samuelson effects (which are present in real convergence and … catching up episodes). It also prompts the process of nominal convergence. The second regime is suited to countries that need … source and nature of economic shocks to which it is exposed with respect to the whole euro area. Interestingly, the results …