Divergent Inflation Rates in EMU

Philip Lane and Patrick Honohan

Economic Papers from Trinity College Dublin, Economics Department

Abstract: We analyse the sources of divergent national inflation rates among EMU member countries. At one level, we review the Irish 'outlier' experience; at another, we estimate panel regressions for the 1999-2001 period. We highlight the role played by differential exposure to euro exchange rate movements in explaining inflation divergence. In addition, we find evidence that ouput gaps and a "price level convergence" effect have also been important. We draw some policy conclusions for the accession countries that are hoping to join EMU.

Date: 2003
New Economics Papers: this item is included in nep-eec, nep-ifn and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (148)

Downloads: (external link)
http://www.tcd.ie/Economics/TEP/2003_papers/tepno4PL23.PDF (application/pdf)

Related works:
Journal Article: Divergent inflation rates in EMU (2003)
Working Paper: Divergent Inflation Rates in EMU (2003)
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:tcd:tcduee:20034

Access Statistics for this paper

More papers in Economic Papers from Trinity College Dublin, Economics Department Contact information at EDIRC.
Bibliographic data for series maintained by Colette Angelov ().