Inflation Differentials between Spain and the EMU: A DSGE Perspective
AbstractThis paper estimates a dynamic stochastic general equilibrium model of a currency union with nominal rigidities to explain the sources of inflation differentials between the Economic Monetary Union (EMU) and one of its member countries, Spain. The paper finds that productivity shocks account for 85% of the variability of the inflation differential. Demand shocks explain a large fraction of output growth volatility but not variability in inflation differentials. In addition, the estimated model finds evidence that inflation dynamics are different across countries in the nontradable sector only. Finally, the Balassa-Samuelson effect does not appear to be an important driver of the inflation differential during the EMU period. Copyright (c) 2009 The Ohio State University.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.
Volume (Year): 41 (2009)
Issue (Month): 6 (09)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Bentolila, Samuel & Dolado, Juan J. & Jimeno, Juan Francisco, 2007.
"Does Immigration Affect the Phillips Curve? Some Evidence for Spain,"
CEPR Discussion Papers
6604, C.E.P.R. Discussion Papers.
- Bentolila, Samuel & Dolado, Juan J. & Jimeno, Juan F., 2008. "Does immigration affect the Phillips curve? Some evidence for Spain," European Economic Review, Elsevier, vol. 52(8), pages 1398-1423, November.
- Samuel Bentolila & Juan J. Dolado & Juan F. Jimeno, 2007. "Does Immigration Affect The Phillips Curve? Some Evidence For Spain," Working Papers wp2007_0718, CEMFI.
- Dolado, Juan José & Bentolila, Samuel & Jimeno, Juan F., . "Does immigration affect the Phillips curve? Some evidence for Spain," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/3210, Universidad Carlos III de Madrid.
- Samuel Bentolila & Juan J. Dolado & Juan F. Jimeno, 2007. "Does Immigration Affect the Phillips Curve? Some Evidence for Spain," Kiel Working Papers 1333, Kiel Institute for the World Economy.
- Bentolila, Samuel & Dolado, Juan José & Jimeno, Juan F., 2007. "Does Immigration Affect the Phillips Curve? Some Evidence for Spain," IZA Discussion Papers 3249, Institute for the Study of Labor (IZA).
- Samuel Bentolila & Juan J. Dolado & Juan F. Jimeno, 2008. "Does immigration affect the Phillips curve? Some evidence for Spain," Banco de Espaï¿½a Working Papers 0814, Banco de Espa�a.
- Samuel Bentolila & Juan Jose Dolado & Juan F. Jimeno, 2007. "Does Immigration Affect the Phillips Curve? Some Evidence for Spain," CESifo Working Paper Series 2166, CESifo Group Munich.
- Carlos Thomas & Francesco Zanetti, 2008.
"Labor market reform and price stability: an application to the Euro Area,"
Banco de Espaï¿½a Working Papers
0818, Banco de Espa�a.
- Thomas, Carlos & Zanetti, Francesco, 2009. "Labor market reform and price stability: An application to the Euro Area," Journal of Monetary Economics, Elsevier, vol. 56(6), pages 885-899, September.
- Hanan Morsy & Florence Jaumotte, 2012. "Determinants of Inflation in the Euro Area: The Role of Labor and Product Market Institutions," IMF Working Papers 12/37, International Monetary Fund.
- Martina Cecioni, 2010. "External trade and monetary policy in a currency area," Temi di discussione (Economic working papers) 738, Bank of Italy, Economic Research and International Relations Area.
- Wieland, Volker & Cwik, Tobias & Müller, Gernot J. & Schmidt, Sebastian & Wolters, Maik, 2012.
"A new comparative approach to macroeconomic modeling and policy analysis,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 83(3), pages 523-541.
- Wieland, Volker & Cwik, Tobias J. & Müller, Gernot J. & Schmidt, Sebastian & Wolters, Maik H., 2012. "A new comparative approach to macroeconomic modeling and policy analysis," CFS Working Paper Series 2012/03, Center for Financial Studies (CFS).
- Cwik, Tobias & Mueller, Gernot & Schmidt, Sebastian & Wieland, Volker & Wolters, Maik H, 2012. "A New Comparative Approach to Macroeconomic Modeling and Policy Analysis," CEPR Discussion Papers 8814, C.E.P.R. Discussion Papers.
- Nikolay Hristov & Oliver Hülsewig & Timo Wollmershäuser, 2010. "Financial Frictions and Inflation Differentials in a Monetary Union," CESifo Working Paper Series 3235, CESifo Group Munich.
- Kamiar Mohaddes & Oral H. Williams, 2013.
"Inflation Differentials In The Gcc: Does The Oil Cycle Matter?,"
Middle East Development Journal (MEDJ),
World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 1350012-1-1.
- Oral Williams & Kamiar Mohaddes, 2011. "Inflation Differentials in the GCC: Does the Oil Cycle Matter?," IMF Working Papers 11/294, International Monetary Fund.
- Gareis, Johannes & Mayer, Eric, 2012. "What drives Ireland's housing market? A Bayesian DSGE approach," W.E.P. - WÃ¼rzburg Economic Papers 88, University of Würzburg, Chair for Monetary Policy and International Economics.
- Javier Andrés & Samuel Hurtado & Eva Ortega & Carlos Thomas, 2010.
"Spain in the Euro: a general equilibrium analysis,"
Spanish Economic Association, vol. 1(1), pages 67-95, March.
- Ruy Lama & Pau Rabanal, 2012. "Deciding to Enter a Monetary Union: TheRole of Trade and Financial Linkages," IMF Working Papers 12/240, International Monetary Fund.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.