Our colleagues published in the Journal of International Money and Finance
Our colleagues, Evžen Kočenda and Václav Brož, published an article “Dynamics and factors of inflation convergence in the European union” in the Journal of International Money and Finance.
The authors analyze inflation convergence in the whole European Union (EU) over 1999–2017. Authors provide comprehensive evidence that the process of inflation convergence among the countries of the EU was not permanently disrupted during the global financial crisis, the European sovereign debt crisis, or the period of zero lower bound interest rates. Specifically, the convergence process did not noticeably weaken after the crisis and the occurrence of inflation convergence became more widespread compared to the pre-crisis years. Results of the article are robust with respect to the use of three inflation benchmarks (the cross-sectional average, the inflation target of the European Central Bank, and the Maastricht inflation criterion), structural breaks, and a core inflation measure. Main findings of the authors imply that further enlargement of the euro area is feasible from the perspective of inflation convergence among EU countries.
For the full article follow this link.
Autor - Mgr. Lucie Křížová M.A.