Price Dynamics in the Eastern Caribbean

The Eastern Caribbean Currency Union (ECCU) countries share a common currency, the EC dollar, which has been pegged to the U.S. dollar at the same rate for more than three decades. This paper examines the influence of the peg on ECCU price stability, and analyzes whether absolute Purchasing Power Parity (PPP) holds within the currency union. It shows that U.S. price stability has helped anchor price movement in the ECCU. As the same time, inflation in the ECCU is not entirely imported from the U.S., and has some domestic policy content. In addition, deviation from PPP within the ECCU can be at

MoreLess

Year of publication:	2008
Authors:	Duttagupta, Rupa
Other Persons:	Sun, Yan (contributor)
Publisher:	Washington : International Monetary Fund
Subject:	Karibischer Raum \| Caribbean countries \| Preisstabilität \| Price stability \| Kaufkraftparität \| Purchasing power parity

Online Resource

Check full text access |

More access options

ebookcentral.proquest.com

Check Google Scholar

In libraries world-wide (WorldCat)

In German libraries (KVK)

subito order

I need help

Extent:	Online-Ressource (23 p)
Series:	IMF Working Papers
Type of publication:	Book / Working Paper
Language:	English
Notes:	Description based upon print version of record Contents; I. Introduction; II. The Price Data; III. Impact of U.S. Price Movements; Tables; 1. Current Composition of CPI Basket; 2. Panel Unit Root Tests of Relative ECCU Prices with the U.S.; 3. Cointegration Test Between ECCU and U.S. Prices; 4. Price Levels-Long-Run Equilibrium Relationships; IV. Real Exchange Rates Within the ECCU; A. Literature Review; 5. Restricted Coefficient Estimates of Short-Run Inflation Dynamics Model; B. Does PPP Hold?; C. What Explains the Deviation from PPP?; 6. Panel Unit Root Tests of Relative Prices Within ECCU 7. Panel Unit Root Tests of Relative Disaggregated Prices Within ECCU8. Standard Deviation of Logarithmic Price Differences; 9. Explaining PPP Deviation; D. Does Engle's Regularity Hold?; V. Concluding Remarks; 10. Ratio of Relative Price Variability to Cross-Country PPP Deviation; Figures; 1. Consumer Price Index Movement, March 1990-December 2006; 2. Tradable Price Index Movement, March 1990-December 2006; 3. Nontradable Price Index Movement, March 1990-December 2006; 4. Relative Price Indexes with the U.S., March 1990-December 2006; 5. Quarterly Inflation, March 1990-December 2006 6. Relative Prices with Antigua and Barbuda7. Relative Nontradable Prices with Antigua and Barbuda; 8. Relative Tradable Prices with Antigua and Barbuda; References
ISBN:	978-1-4518-6951-4 ; 978-1-4519-8527-6 ; 978-1-4518-6951-4
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012677908