This paper tests the existence of persistent inflation rate differentials in the euro area by employing linear as well nonlinear unit root tests. Besides linear unit root tests, a two-regime threshold unit root test examines the conjecture that inflation rate differentials follow a nonlinear...

This paper tests the conjecture that inflation rate persistence in selected Latin American countries, namely Brazil, Mexico, Uruguay and Venezuela, is related with currency undervaluation. In this manner, we expect that the behaviour of inflation rates may be non linear reflecting the changing...

In this study, we attempt to examine the possibility of emergence of significant fluctuations of the exchange rates in the future for the candidate EMU countries. In doing so, we estimate the equilibrium rate of the nominal effective exchange rate for Poland, Hungary, Slovak Republic and Malta...