Regional Inflation Divergence in the Context of EMU
AbstractWe find that regional inflation dispersion has not markedly increased since the start of EMU, although it is somewhat higher than in other monetary unions (US and Germany), and that the distribution of member states' rates of inflation around the euro area HICP inflation rate is characterised by a few outliers. In addition, an analysis based on economic weights suggests that roughly 60 percent of euro area consumer spending experiences an inflation rate that is within a range of 0.5 percentage points of the euro area HICP inflation rate. This suggests that in the first three years since the start of EMU regional inflation dispersion has not posed problems for the adoption of the single monetary policy for the majority of member states.
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Bibliographic InfoPaper provided by Netherlands Central Bank, Monetary and Economic Policy Department in its series MEB Series (discontinued) with number 2002-19.
Date of creation: Nov 2002
Date of revision:
Regional economics; European Monetary Policy; European Monetary Union (EMU); Inflation;
Find related papers by JEL classification:
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-08-17 (All new papers)
- NEP-CBA-2003-08-17 (Central Banking)
- NEP-EEC-2003-08-17 (European Economics)
- NEP-GEO-2003-08-17 (Economic Geography)
- NEP-IFN-2003-08-17 (International Finance)
- NEP-MON-2003-08-17 (Monetary Economics)
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