Price Dynamics in Central and Eastern European EU Accession Countries

Backé, Peter; Fidrmuc, Jarko; Reininger, Thomas; Schardax, Franz

doi:10.1080/1540496x.2003.11052541

Cited by 44 publications

(25 citation statements)

References 27 publications

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“…These authors find little evidence of convergence to the West, either during the pre-reform period or in the full period. Finally, Backé et al (2003) find significant differences in comparative price levels between EU countries and most Central and Eastern European EU accession countries. Kočenda (2001) is a notable exception because he studies the nominal and real convergence of macroeconomic fundamentals in several groups of transition economies.…”

Section: Introductionmentioning

confidence: 98%

“…More recently, these countries have begun to experience positive real economic growth. As countries display similar economic performance over time, more real and monetary convergence in macroeconomic fundamentals is expected because the impact of initial conditions declines over time (Backé et al, 2003). Three reasons motivate our investigation of degree of convergence in transition economies.…”

Section: Introductionmentioning

confidence: 99%

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Nominal and real stochastic convergence of transition economies

Kutan

Yigit

2004

Journal of Comparative Economics

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Section: Introductionmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

Nominal and real stochastic convergence of transition economies

Kutan

Yigit

2004

Journal of Comparative Economics

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“…Brada and Kutan (2001) examine monetary-policy convergence, while Janáčková (2000), Richards and Tersman (1996), and Backé et al (2003) investigate price-level convergence between the EU and the transition-economy candidates. These studies find weak monetary-and price-level convergence.…”

Section: A Brief Review Of the Literaturementioning

confidence: 99%

Pilgrims to the Eurozone: How far, how fast?

2006

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In our analysis, we re-examine the nominal and real convergence of all recent 10 European Union (EU) members to EU standards. Testing for monetary convergence has significant implications for interim optimal exchange rate and monetary policies before a formal and permanent link to the euro, while real convergence is the ultimate objective of economic integration. Novel features of the paper include broader measures of real convergence in both euro as well as local currencies, an examination of inflation and interest rate convergence with respect to the Maastricht benchmarks, and employment of more appropriate tests of convergence allowing for structural breaks. The results indicate slow but steady per-capita real income convergence towards EU standards. On the other hand, evidence indicates significant strong inflation and interest rate convergence. Policy implications of the paper are also discussed. #

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“…Our findings have important implications for the choice of an exchange rate regime and the time of entry to the Euro zone by the new members before they consider a formal and permanent peg to the Euro. Babetskii et al (2004), Maurel (1998, 1999), Backè et al (2003), Brada and Kutan (2001), Fidrmuc and Korhonen (2003), and Richards and Tersman (1996) investigate the convergence of the candidate countries to EU standards. Most of these papers do not provide comprehensive evidence in terms of country coverage and they rely on relatively small time-series data sets.…”

Section: Introductionmentioning

confidence: 99%

Real and nominal stochastic convergence: Are the new EU members ready to join the Euro zone?

Kutan

Yigit

2005

Journal of Comparative Economics

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A key requirement for the new members to join the European Economic and Monetary Union (EMU) is real and financial convergence to European Union (EU) levels. This paper expands the analysis in [Kočenda, E., Macroeconomic convergence in transition economies, Journal of Comparative Economics 29 (2001) 1-23] and [Kutan, A., Yigit, T., Nominal and real stochastic convergence of transition economies, Journal of Comparative Economics 32 (2004) 23-36] by investigating the convergence of the new EU members to these standards. Using panel unit root techniques, we find strong evidence of real stochastic convergence for all new members, which indicates that they adjust to Euro-area output shocks. However, the degree of nominal convergence is idiosyncratic. The Baltic states exhibit the strongest monetary policy and price-level convergence, suggesting that they are ready to adopt the Euro. However, Central and East European countries should address the reasons for their lack of convergence before adopting the Euro. © 2005 Association for Comparative Economic Studies. Published by Elsevier Inc. All rights reserved

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Price Dynamics in Central and Eastern European EU Accession Countries

Cited by 44 publications

References 27 publications

Nominal and real stochastic convergence of transition economies

Nominal and real stochastic convergence of transition economies

Pilgrims to the Eurozone: How far, how fast?

Real and nominal stochastic convergence: Are the new EU members ready to join the Euro zone?

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