Economics at your fingertips  

Monetary policy and nominal convergence in CEE countries with inflation targeting

Lukasz Goczek () and Dagmara Mycielska ()

Ekonomia journal, 2014, vol. 38

Abstract: The article discusses the monetary policy in small open economies with inflation targeting and their nominal convergence to the larger monetary area. Using panel data set, the paper considers the relationship between interest rates of interbank markets in the euro area and selected Central European countries – non-euro members of the European Union that follow inflation targeting strategy. We test for panel cointegration and use two estimators: Augmented Mean Group and Random Coefficients. The empirical results show that in the long run the interest rates of non-euro EU countries follow the Eurozone interest rates. What is more important, the AMG model’s common dynamic insignificance suggests that other factors are not relevant to the nature of interest rates transmission.

Keywords: AMG; Swamy; cointegration; monetary policy; interest rates (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) (application/pdf)

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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Ekonomia journal is currently edited by Tomasz Żylicz

More articles in Ekonomia journal from Faculty of Economic Sciences, University of Warsaw Contact information at EDIRC.
Bibliographic data for series maintained by Marta Höffner ().

Page updated 2021-01-25
Handle: RePEc:eko:ekoeko:38_31