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Growth and Inflation Disparities in Corridor V

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  • Dino Martellato

    ()
    (Department of Economics, University Of Venice Ca’ Foscari)

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    Abstract

    The paper offers a brief discussion about the role of transport infrastructure in the current growth strategy followed by the EU. As a corridor is the locus where transport infrastructure and growth should interact more effectively, the central part of Corridor V is considered as an interesting case study. A growth scenario for eight countries is provided to show that wide growth disparities are to be expected during the next decade. The final part of the paper speculates about inflation differentials that are likely to emerge when growth differentials tend to persist inside a monetary union. As the Euro zone will be enlarged to host fast-growers in Corridor V such as Slovenia (maybe as soon as 2007), Hungary and the Slovak Republic, growth differentials and the single monetary policy could make it difficult to deliver a common monetary environment.

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    File URL: http://www.unive.it/media/allegato/DIP/Economia/Working_papers/Working_papers_2006/WP_DSE_Martellato_19_06.pdf
    File Function: First version, 2006
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    Bibliographic Info

    Paper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2006_19.

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    Length: 19 pages
    Date of creation: 2006
    Date of revision:
    Handle: RePEc:ven:wpaper:2006_19

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    Related research

    Keywords: Growth; money demand; inflation; infrastructure; European Union;

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    1. Roberto Ezcurra & Carlos Gil & Pedro Pascual & Manuel Rapún, 2005. "Public capital, regional productivity and spatial spillovers," The Annals of Regional Science, Springer, Springer, vol. 39(3), pages 471-494, 09.
    2. Warne, Anders & Bruggeman, Annick & Donati, Paola, 2003. "Is the demand for euro area M3 stable?," Working Paper Series, European Central Bank 0255, European Central Bank.
    3. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, Elsevier, vol. 23(2), pages 177-200, March.
    4. Fabio Busetti & Lorenzo Forni & Andrew Harvey & Fabrizio Venditti, 2007. "Inflation Convergence and Divergence within the European Monetary Union," International Journal of Central Banking, International Journal of Central Banking, International Journal of Central Banking, vol. 3(2), pages 95-121, June.
    5. Claus Brand & Nuno Cassola, 2004. "A money demand system for euro area M3," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(8), pages 817-838.
    6. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 32(3), pages 1176-96, September.
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