Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83939
Authors: 
Arghyrou, Michael G.
Gregoriou, Andros
Kontonikas, Alexandros
Year of Publication: 
2007
Series/Report no.: 
Cardiff Economics Working Papers E2007/26
Abstract: 
We test for real interest rate convergence in the EU25 area. Our contribution is twofold: ?rst, we account for the previously overlooked effects of structural breaks on real interest rate differentials. Second, we test for convergence against the EMU average. For the majority of our sample countries we obtain evidence of convergence towards the latter. This, however, is a gradual process subject to structural breaks, typically falling close to the launch of the euro. Our ?ndings have important implications relating to the single monetary policy and the progress new EU members have achieved towards joining the euro.
Subjects: 
Real interest rates
Convergence Structural breaks
EU
EMU
JEL: 
F21
F32
C15
C22
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.