Inflation Dynamics and Dual Inflation in Accession Countries: A 'New Keynesian' Perspective

Dual Inflation and the Real Exchange Rate in New Open Economy Macroeconomics [with Comments]

“…Although it was not studied in this paper, it is worth mentioning here that decreasing returns to scale can also explain the role of demand factors in generating dual inflation as documented in Arratibel, Rodriguez-Palenzuela, and Thiman (2002) and Lopez-Salido, Restoy, and Valles (2005).…”

“…Although in this paper I study only productivity induced dual inflation, I should mention that studies analyzing the BS effect have often detected other non-productivity factors in the determination of the sectoral relative price. Moreover, Arratibel, Rodriguez-Palenzuela, and Thiman (2002) do not simply provide alternative explanations for dual inflation, they deny the role of productivity factors in the determination of the examined countries. However, the authors admit that one should interpret this result with caution because of the poor quality of productivity data.…”

L'influence du régime de change sur l'inflation dans les pays adhérents

“…Après avoir passé en revue les différentes analyses empiriques de la transmission du taux de change, l'article complète l'analyse de Coricelli, Jazbec et Masten (2003) Source : Arratibel, Rodriguez-Palenzuela, et Thimann, 2002. des élasticités dans un sens structurel. Cette question de l'identification n'est pas traitée dans la littérature.…”

The Maastricht Convergence Criteria and Optimal Monetary Policy for the EMU Accession Countries

“…Mihaljek and Klau (2004)) also highlight the role of productivity shocks in the nontraded sector in a¤ecting the CPI in ‡ation rate and the real exchange rate appreciation in the EMU accession countries. 3 The second stream of the literature builds an analysis in the framework of open economy DSGE models. Devereux (2003) and Natalucci and Ravenna (2003) …nd that the monetary regime characterized by ‡exible in ‡ation targeting with some weight on exchange rate stability succeeds in ful…lling the Maastricht criteria.…”

“…We can list the following empirical studies that analyze CPI in ‡ation and real exchange rate developments in the EMU accession countries: Cipriani (2001), de Broeck and Slok (2001), Egert et al (2002), Fisher (2002), Halpern and Wyplosz (2001), Coricelli and Jazbec (2001), Arratibel et al (2002),Mihaljek and Klau (2004) 3. This study goes in line with a recent paper byAltissimo et al (2004) on the sources of in ‡ation di¤erentials in the euro area.…”