This empirical paper uses a GMM-System panel estimator to assess the vulnerability of inflation in the new EU Member States to country-specific and global factors over the period 1998 to 2007, including an assessment of the more recent 2002 to 2007 period. Using a large dataset of macroeconomic,...

This paper examines the presence of non-linear mechanism in the exchange rate pass-through (ERPT) to CPI inflation for 12 euro area (EA) countries. Using smooth transition regression (STR) model, we explore the existence of non-linearities with respect to the inflation environment. We find...

This paper examines the exchange rate pass-through (ERPT) into import prices using recent panel data techniques. For a sample of 27 OECD countries, panel cointegration tests provide an evidence for the existence of long-run equilibrium relationship in pass-through equation. Following Pedroni...

Using data for 102 developing countries, it is shown that inflation persistence is particularly low in countries on hard pegs, and particularly high in countries with severe inflationary problems. Inflation persistence is similar under floating and soft pegs. The finding of low inflation...

This note shows that indeterminacy arising from an economy exhibiting production with social constant returns to scale may be related to the instability of the consumption goods market equilibrium. Furthermore, trade does not contribute to indeterminacy indeterminacy arises becasue each...

The European Commission (1990) and Frankel and Rose (1997, 1998) pointed out that the traditional paradigm of Optimum Currency Areas is misleading because some consequences of monetary unions bring country-specific shocks closer together. Trade, for example, is not only a result of monetary...

This paper tests the present readiness of Slovakia to join the European Monetary Union (EMU) based on the classical Optimum Currency Area criteria, the degree of trade intensity and business cycle synchronization. The results do not fully confirm the hypothesis that Slovakia already constitutes...

This paper empirically analyzes the determinants of foreign direct investment for Sub-Saharan African countries and other some developing countries. Our results suggest that both productivity-related policy and exchange rate policy can be effective in sharpening FDI competitiveness, i.e., in...

Frankel and Rose (1997, 1998) state that greater intensity of trading leads to more highly correlated business cycles across countries. Since 2005 Puerto Rico, which belongs to the US currency area, has suffered from economic stagnation. This raises the issue of whether currency areas lead to...

In this paper we use the factor model and propose a parametric approach to investigate the process of cyclical convergence in the Euro Area (EA) over the period 1989-2011. Our results show that despite the fact that EA countries share a common business cycle, further convergence after the run-up...