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Inflation convergence within the European Union: A panel data analysis
Author(s) -
Kočenda Evžen,
Papell David H.
Publication year - 1997
Publication title -
international journal of finance and economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 39
eISSN - 1099-1158
pISSN - 1076-9307
DOI - 10.1002/(sici)1099-1158(199707)2:3<189::aid-ijfe46>3.0.co;2-6
Subject(s) - convergence (economics) , economics , inflation (cosmology) , panel data , european union , exchange rate , macroeconomics , panel analysis , international economics , monetary economics , mechanism (biology) , econometrics , european monetary union , monetary policy , philosophy , physics , epistemology , theoretical physics
This paper investigates the question of whether there exists evidence in support of inflation convergence within the European Union. The analysis also focuses on whether the Exchange Rate Mechanism (ERM) helped to accelerate inflation convergence in its member countries. The results of this paper are supportive of convergence. The countries which continuously participated in the narrow ERM bands show a dramatically higher convergence rate during the period following establishment of the mechanism. © 1997 John Wiley & Sons, Ltd.