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Considerations regarding inflation's evolution in Central and Eastern European countries

Author

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  • Lupu, Dan
  • Asandului, Mircea
  • Sîrghi, Nicoleta

Abstract

Inflation is a macroeconomic phenomenon, intensively experimented by the Central and Eastern European (CEE) countries, new members of the European Union. The analysis was performed on a group of 10 Central and East European countries for the period 1990-2014. The aim of this study is to analyse the inflation phenomenon in this countries in the mentioned period that has been characterized by passing from hyperinflation to deflation. The evolution of inflation rate is extremely important in the present context because of the EU integration and because differences between inflation rates will influence real wages and interest which, in their turn, will affect the capital flows and labour force. The research methodology is new, quitting the classical analyses of ARCH type and instead using the Markov Switching – Auto Regressive (MS-AR) model.

Suggested Citation

  • Lupu, Dan & Asandului, Mircea & Sîrghi, Nicoleta, 2015. "Considerations regarding inflation's evolution in Central and Eastern European countries," MPRA Paper 95508, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:95508
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    inflation; Markov Switching-Auto Regressive (MS-AR) model; Consumer Price Index; CEE countries;
    All these keywords.

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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