The dynamics of core and periphery in the European monetary union: A new approach

Nauro Campos and Corrado Macchiarelli

Journal of International Money and Finance, 2021, vol. 112, issue C

Abstract: Despite numerous studies about core-periphery in monetary unions, few focus on their dynamics. This paper (i) presents new theory-based, continuous and dynamic measures of the probability of a country being classified as core or periphery; (ii) estimates the determinants of the changes in this probability over time and across countries; and (iii) uses the Phillips-Sul convergence panel framework to investigate the behaviour of core and periphery groups over time. Our main results indicate that the post-EMU decrease of the core-periphery gap that we document was mainly driven by the adoption of the euro and by increasing competition (lower mark-ups).

Keywords: Euro; Core-periphery; Competition; Symmetry; Convergence (search for similar items in EconPapers)
JEL-codes: C5 E3 F4 N1 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Working Paper: The dynamics of core and periphery in the European monetary union: a new approach (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:112:y:2021:i:c:s0261560620302813

DOI: 10.1016/j.jimonfin.2020.102325

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