Inflation Differentials Among European Monetary Union Countries: An Empirical Evaluation With Structural Breaks

Stylianou, Tasos

doi:10.1017/nie.2022.25

Cited by 4 publications

(3 citation statements)

References 53 publications

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“…Some of these studies (Hofmann and Remsperger (2005); Licheron ( 2007)) mentioned that because of the goal of low inflation and the single monetary policy, the strong persistence effects of inflation differentials would decrease and eventually vanish. Contrary to these expectations, our results, which are common with the results of Stylianou (2022), show that this persistence remains strong and statistically significant even after all these years despite the available time for convergence.…”

Section: Conclusion and Policy Implicationscontrasting

confidence: 99%

Inflation Differentials of Euro Countries and Their Determinants

Panagiotis,

Argyrios

2023

Economies

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The purpose of this paper is to examine the inflation differentials and their determinants in the first twelve euro countries that formed the eurozone. We focus on only these countries to capture the effects through the last 22 years from 1999 to 2020, without taking into consideration the changes in dynamics that were caused due to the integration of more countries since 2007. The dynamic panel data results, estimated with the system Generalised Method of Moments estimation method, show that it is mostly structural and cyclical factors that drive inflation differentials among these euro countries and that there are no significant indications that other convergence processes have taken place during this time span to explain increase in certain countries’ inflation. We conclude by mentioning the potential role that inflation differentials could play in the European Central Bank’s decision-making process.

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Section: Conclusion and Policy Implicationscontrasting

confidence: 99%

Inflation Differentials of Euro Countries and Their Determinants

Panagiotis,

Argyrios

2023

Economies

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“…The responsibility of managing the money supply and influencing interest rates lies with the central bank of each country, a function governed by the tools of monetary policy [4,5]. It is well-established that unexpected increases in the money supply lead to higher interest rates and, subsequently, to an increase in prices [6].…”

Section: Introductionmentioning

confidence: 99%

The relationship between money supply and inflation in Pakistan

Stylianou,

Nasir,

Waqas

2024

PLoS ONE

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This paper investigates the long-run and short-run relationship between money supply and inflation in Pakistan, utilizing annual data spanning from 1981 to 2021. The key objective is to assess the impact of monetary policy, specifically money supply, on inflation dynamics in the country. To achieve this, the Autoregressive Distributed Lag (ARDL) bounds testing approach is employed, which is suitable for analyzing cointegration among variables with mixed integration orders. The results reveal both short and long-run cointegration between inflation, money supply, unemployment, and interest rates. Notably, unemployment demonstrates a negative correlation with inflation, while money supply and interest rates exhibit a positive relationship. These findings underscore the importance of dedicated policy measures to manage inflation effectively. The paper concludes by recommending the establishment of a policy implementation body and collaboration between the government and the central bank to ensure financial stability and control inflation through well-calibrated monetary and fiscal policies.

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“…The monetary policy of the European Central Bank (ECB) aims to promote productivity growth, maintain low and stable inflation, and reduce and homogenize real effective exchange rates within the EMU. The main aim of ECB is to keep prices stable, thereby supporting economic growth and job creation (Stylianou, 2022).…”

Section: Introductionmentioning

confidence: 99%

Analyzing the Correlation between Central Bank Interest Rates and Inflation on the Example of Poland within the European Union

Borawski,

Beldycka-Borawska,

Zuchowski

et al. 2024

ERSJ

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Purpose:The main aim of this study was to determine the relationship between inflation and interest rates of the Central Bank in Poland with the background of European integration and the COVID-19 pandemic. Design/Methodology/Approach: The Central Bank of Poland (CBP) was the main source of data for the analysis . We used different methods which helped to analyze the changes in inflation and interest rates in Poland, for example Augmented Dickey Fuller test (ADF test), Autoregressive Moving Average model (ARIMA model) and the regression analysis using the Classical Method of Least Square. Findings: The study demonstrated that inflation will decrease steadily in Poland due to relatively high interest rates. The Central Bank of Poland and government agencies should implement cohesive policies to reduce inflation. The Central Bank of Poland has increased interest rates to fight inflation, whereas the wide range of social welfare programs introduced by the government has contributed to higher inflation. Practical implications: The results will fill in the gap concerning the financial policy of Central Bank.

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Inflation Differentials Among European Monetary Union Countries: An Empirical Evaluation With Structural Breaks

Cited by 4 publications

References 53 publications

Inflation Differentials of Euro Countries and Their Determinants

Inflation Differentials of Euro Countries and Their Determinants

The relationship between money supply and inflation in Pakistan

Analyzing the Correlation between Central Bank Interest Rates and Inflation on the Example of Poland within the European Union

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