We compare the convergence with German monetary policy of the Balkan and Mediterranean country candidates for EU … membership with that of countries that have recently joined the EU. Significant linkages exist between German base money stock … and that of recent members of the EU; the same holds true for some of the Mediterranean region candidates for EU …

admission to the European Union (EU), Poland and Hungary. Using a rational expectations, dynamic open economy aggregate supply … component of inflation has been demand driven, "core" inflation. Finally, policy implications of these findings regarding EU …