The convergence of inflation rates in the EU-12 area: A distribution dynamics approach

Alessandro Cavallero

Journal of Macroeconomics, 2011, vol. 33, issue 2, 341-357

Abstract: This paper provides an assessment of Euro area inflation dynamics based on the distribution dynamics approach. It is found that raw series and trends have converged, although the convergence process has not been constant over time. Inflation cycles still lack of synchronization over short time horizons. In search for an economic explanation for cyclical inflation dynamics, the paper suggests that country-specific labor market institutions are likely to affect inflation outcomes above all in high inflation countries. Moreover, the cyclical inflation divergence arises from output fluctuations.

Keywords: Inflation; rate; convergence; Euro; area; Thick; modeling; Trend-cycle; decomposition; Distribution; dynamics (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0164-0704(11)00006-1
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:33:y:2011:i:2:p:341-357

Access Statistics for this article

Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos

More articles in Journal of Macroeconomics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().