Inflation persistence: is it similar in the new EU member states and the euro area members?

0316969 - NHÚ 2009 CZ eng J - Journal Article
Franta, Michal - Saxa, Branislav - Šmídková, K.
Inflation persistence: is it similar in the new EU member states and the euro area members?
IES Working Paper Series. -, 25/2008 (2008), s. 1-35
Grant - others:Česká národní banka(CZ) B4/2003
Institutional research plan: CEZ:AV0Z70850503
Keywords : inflation persistence * new EU member states * new hybrid Phillips curve
Subject RIV: AH - Economics
http://ies.fsv.cuni.cz/default/file/download/id/9070

Inflation persistence has been put forward as one of the potential reasons of divergence among euro area members. It has also been proposed that the new EU Member States (NMS) may struggle with even higher persistence due to convergence factors. We argue that persistence may not be as different between the two country groups as one might expect. However, this empirical result can only be obtained if the adequate estimation methods, reflecting the scope of the convergence process the NMS went through, are applied.
Permanent Link: http://hdl.handle.net/11104/0166736