Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105888
Authors: 
Proaño Acosta, Christian
Year of Publication: 
2007
Series/Report no.: 
IMK Working Paper 5/2007
Abstract: 
The high degree of persistence in the national inflation differentials of the majority of EMU Member States observed since the introduction of the euro has raised serious concerns among researchers and policy-makers alike. In this paper the main theoretical arguments which explain the existence of such inflation differentials within a monetary union are reviewed and, by means of econometric methods, their dynamic behaviour prior and after the introduction of the euro is analyzed. Furthermore, the empirical evidence for different degrees of correlation between the country-specific business cycles fluctuations and the arise of national inflation differentials with respect to the euro area average are investigated through single-equation GMM and panel TSLS estimations.
Subjects: 
Inflation differentials
convergence and stationary tests
GMM es- timation
Phillips Curve
JEL: 
C23
C33
E31
E32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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