Nominal Uncertainty and Inflation: The Role of European Union Membership
AbstractUsing a GARCH model we provide evidence that higher inflation uncertainty leads to higher inflation in the new European Union (EU) member states and candidate countries only prior to EU accession. During EU accession and entry inflation uncertainty has no effect on mean inflation. This result supports the consideration of policy regime shifts in assessing the nominal uncertainty-average inflation relationship.
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Bibliographic InfoPaper provided by Economics, The Univeristy of Manchester in its series Centre for Growth and Business Cycle Research Discussion Paper Series with number 146.
Length: 9 pages
Date of creation: 2010
Date of revision:
Other versions of this item:
- Neanidis, Kyriakos C. & Savva, Christos S., 2011. "Nominal uncertainty and inflation: The role of European Union membership," Economics Letters, Elsevier, vol. 112(1), pages 26-30, July.
- NEP-ALL-2010-07-17 (All new papers)
- NEP-CBA-2010-07-17 (Central Banking)
- NEP-EEC-2010-07-17 (European Economics)
- NEP-MAC-2010-07-17 (Macroeconomics)
- NEP-MIC-2010-07-17 (Microeconomics)
- NEP-MON-2010-07-17 (Monetary Economics)
- NEP-TRA-2010-07-17 (Transition Economics)
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