Inflation persistence: Implication for a monetary union in the Caribbean

Juan Cuestas and Carlyn Dobson ()
Additional contact information
Carlyn Dobson: Division of Economics, Nottingham trent University

No 2011017, Working Papers from The University of Sheffield, Department of Economics

Abstract: In this paper we aim to shed some light on the potential for creating a monetary union in the Caribbean. We analyse the inflation rates for twelve countries using various time series methods. The results show that the inflation rates are mean reverting processes and that there is evidence of a convergence club in inflation rates within the area, which contradicts previous studies. Our contribution implies good news for the creation of a common central bank in the Caribbean.

Keywords: Caribbean; inflation persistence; monetary union and unit roots (search for similar items in EconPapers)
JEL-codes: C32 F15 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2011-08
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.shef.ac.uk/economics/research/serps/articles/2011_17.html First version, 2011 (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: https://EconPapers.repec.org/RePEc:shf:wpaper:2011017

Access Statistics for this paper

More papers in Working Papers from The University of Sheffield, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Mike Crabtree ().