Inflation convergence in the EMS : some additional evidence : a comment

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Show simple item record Thom, Rodney 2008-12-08T12:45:42Z 2008-12-08T12:45:42Z 1995, Kiel Institute for the World Economy en 1995-09
dc.identifier.citation Review of World Economics en
dc.identifier.issn 1610-2886
dc.description.abstract As in Caporale and Pittis, this paper finds significant evidence supporting the hypothesis of long-run equilibrium relationships between inflation rates in countries which participate in the ERM. However, the results differ in several important respects. First, the evidence rejects a dynamic specification in terms of inflation differentials against Germany and in at least one important case, Table 5, it is clear that imposing this restriction may lead to invalid inferences on the role of the ERM as a mechanism to achieve inflation convergence. Second, on the issue of German leadership the results given in Tables 4 and 5 suggest that the German inflation rate cannot be considered weakly exogenous. Rather it shares a long-run relationship with inflation in both ERM and non-ERM economies and responds to deviations from these equilibria. Finally, as these results also hold for a sample period twice the length of that used by Caporale and Pittis they cast considerable doubt on their assertion that cointegrating relationships are unlikely to be detected when “the dynamic process of convergence is still going on”. en
dc.format.extent 4304 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher Springer en
dc.subject.lcsh Inflation (Finance)--Europe en
dc.subject.lcsh European Monetary System (Organization) en
dc.subject.lcsh Foreign exchange--Europe en
dc.title Inflation convergence in the EMS : some additional evidence : a comment en
dc.type Journal Article en
dc.internal.authorurl Rodney Thom (web page) en
dc.internal.authorurl en
dc.internal.authorid UCD0023 en
dc.internal.availability Full text not available en
dc.internal.webversions Publisher's version en
dc.internal.webversions en
dc.status Peer reviewed en
dc.identifier.volume 131 en
dc.identifier.issue 3 en
dc.identifier.startpage 577 en
dc.identifier.endpage 586 en
dc.identifier.doi 10.1007/BF02707919
dc.neeo.contributor Thom|Rodney|aut|UCD0023

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