Author: Nada Choueiri
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 46
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This paper explores inflation determinants within the EU and implications for new members' euro adoption plans. Factor analysis partitions observed inflation in EU25 countries into common-origin and country-specific (idiosyncratic) components. Cross-country differences in common-origin inflation within the EU are found to depend on gaps in the initial price level, changes in the nominal effective exchange rate, the quality of institutions, and the economy's flexibility. Idiosyncratic inflation is generally small in magnitude. Nonetheless, the results show that country-specific shocks have systematically pushed down headline inflation, potentially influencing the assessment of compliance with the Maastricht inflation criterion.
Author: International Monetary Fund. Asia and Pacific Dept
Publisher: International Monetary Fund
ISBN: 1498345417
Category : Business & Economics
Languages : en
Pages : 42
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This Selected Issues paper discusses reasons behind rise of inflation in Philippines. The paper focuses on inflation developments and the monetary policy framework in the Philippines. It employs a global latent factor model to decompose inflation into common drivers and idiosyncratic factors for a sample of 62 countries. Based on these results, it then models inflation in different regions and presents the single country, single equation model and conducts out of sample forecasts to determine consistency with the medium-term inflation target. The common factors modeling of inflation suggests that inflation in the Philippines depends on world commodity price developments and movements in the US dollar effective exchange rate. However, theory suggests that domestic cyclical conditions also matter. We assess the importance of these variables by estimating a Phillips curve augmented by world commodity prices and the nominal exchange rate for 2000–2013. Using the Akaike-Schwartz criterion, the optimal lag length is found to be four. Given the potential for serial correlation and heteroskedasticity, we use the Newey-West standard errors to find the consistent estimates.
Author:
Publisher:
ISBN:
Category : European Economic Community countries
Languages : en
Pages : 168
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The workshop discussed cross-country and quantitative analyses of the determinants of inflation in the NMS, focusing in particular on three broad questions: (i) to assess the relative importance of external versus domestic drivers of inflation; (i) to study the relative importance of catching-up and transition-related inflation; (iii) to examine the role of macroeconomic and structural policies in determining the dynamics of inflation in NMS.
Author:
Publisher:
ISBN: 9789276616474
Category :
Languages : en
Pages : 0
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This note analyses inflation and competitiveness developments in selected EU countries, as input to the 2023 In-Depth Reviews under the Macroeconomic Imbalance Procedure. It aims to provide the analytical basis for the assessment of potential imbalances linked to competitiveness for Czechia, Estonia, Hungary, Latvia, Lithuania, Romania and Slovakia.1 These countries were selected after the first screening for imbalances in the 2023 Alert Mechanism Report on the basis of the evolution of their rates of inflation, unit labour costs and real effective exchange rates. Out of these Member States, only Romania has been considered to experience an imbalance in the 2022 assessment. This note considers the impact of common factors affecting inflation differentials and competitiveness, particularly of commodity price developments, to provide context to the forthcoming In-Depth Reviews under the Macroeconomic Imbalance Procedure. The analysis to anticipate the evolution of potential risks by relying on the most recent data and available forecasts, and places recent developments in the context of changes that have taken place within and before the pandemic period.2 The analysis provided is not exhaustive. At the time of publication of the In-Depth Reviews, more up to date data will inform the assessments that will be made, and the existence or not of imbalances will take on board developments across countries' economies and additional country-specific factors. Since 2019, the EU economies have been faced with a combination of supply and demand shocks that have affected both relative prices and inflation. Throughout the pandemic and after, various bottlenecks have constrained supply. At the same time, containment measures during the acute phase of the pandemic and uncertainty constrained demand, particularly for contact intensive services, affecting relative prices. In the recovery phase, the rapid surge in demand, while supply was still facing constraints, pushed prices up. Price pressures for energy and commodities, but especially for natural gas, were aggravated significantly by Russia's invasion of Ukraine and the disruption of supplies, particularly to Europe.
Author:
Publisher:
ISBN:
Category : European Union countries
Languages : en
Pages : 68
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Author: Filip Keereman
Publisher: Springer Science & Business Media
ISBN: 3642125166
Category : Business & Economics
Languages : en
Pages : 275
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Book Description
The Fifth Enlargement that took place in 2004 and 2007 was a milestone in the history of the European Union. Not only because of the large number of acceding countries but also because of their recent political and economic experience. Ten of them had undergone a profound transition from a totalitarian regime to democracy, and from a centrally planned economy to a market-based system. Most of them had income levels signi?cantly below those of the then EU-15. Now, 6 years later, we can clearly see that the process of European integration, both before and after 2004, was what enabled Europe to overcome the gaps between various parts of the continent. The enlargement made Europe a better and wealthier place and streng- ened its position in the world. Integration into the European Union has always been one of the strongest incentives for reform in the new Member States. Particularly important in my view have been the development of ?nancial markets through foreign direct investment and capital in?ows, and the opening of labour markets – which was a two-way phenomenon, with markets being opened up in acceding as well as the incumbent Member States. The Fifth Enlargement was thus an exercise of glo- lisation in miniature, a practice run for the Union to tackle the challenges of the ever smaller world.
Author: Daron Acemoglu
Publisher: La fabrica
ISBN: 9788416248421
Category : Architecture
Languages : en
Pages : 0
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Book Description
This volume is now the eighth in the annual series sponsored by BBVA as part of its OpenMind initiative, which is devoted to disseminating knowledge on key issues of our time. The Search for Europe analyses the present and future of the old continent and its integration project, surely the most ambitious political and economic integration project ever attempted in history, a benchmark for similar processes in other regions. The book is divided into three main sections: "The economic foundations of the European project", "Europe and its nations: Politics, society and culture", and "The unresolved Limits of Europe and the new global powers". It features pieces written by international experts such as Javier Solana, Barry Eichengreen, Philip Cooke, Bichara Khader, Vivien Ann Schmidt, John Peet and Thomas Christiansen, among others.
Author: Laurent Ferrara
Publisher: Springer
ISBN: 3319790757
Category : Business & Economics
Languages : en
Pages : 300
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Book Description
This book collects selected articles addressing several currently debated issues in the field of international macroeconomics. They focus on the role of the central banks in the debate on how to come to terms with the long-term decline in productivity growth, insufficient aggregate demand, high economic uncertainty and growing inequalities following the global financial crisis. Central banks are of considerable importance in this debate since understanding the sluggishness of the recovery process as well as its implications for the natural interest rate are key to assessing output gaps and the monetary policy stance. The authors argue that a more dynamic domestic and external aggregate demand helps to raise the inflation rate, easing the constraint deriving from the zero lower bound and allowing monetary policy to depart from its current ultra-accommodative position. Beyond macroeconomic factors, the book also discusses a supportive financial environment as a precondition for the rebound of global economic activity, stressing that understanding capital flows is a prerequisite for economic-policy decisions.
Author: Ms.Enrica Detragiache
Publisher: International Monetary Fund
ISBN: 1513545078
Category : Business & Economics
Languages : en
Pages : 46
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Book Description
A hypothetical European Minimum Wage (MW) set at 60 percent of each country’s median wage would reduce in-work poverty but have limited effects on overall poverty, as many poor households do not earn a wage near MW and higher unemployment, higher prices, and a loss of social insurance benefits may erode direct benefits. Turning to competitiveness, since the MW increase to reach the European standard would be larger in euro area countries with excessive external surpluses, the associated real appreciation should help curb existing imbalances. However, a few countries with already weak external positions would experience an undesirable real appreciation.
Author: Otmar Issing
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 344
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Book Description
