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Empirical evaluation of nominal convergence in Czech Republic, Poland and Hungary (CPH)

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  • Mamoudou, Toure
  • Jamel, Trabelsi
  • Frédéric, Dufourt

Abstract

We estimate a four variable structural vector auto regression (SVAR) model of the Czech Republic, Poland and Hungary economies in order to evaluate the links between the instruments of monetary policy and inflation outcomes. We find that the linkages between the interest rates and price levels are weak. However, the exchange rate constitutes the most important channel of monetary policy transmission for Poland and Hungary. For the Czech Republic, the link between interest rate rise and price level is rather indirect.

Suggested Citation

  • Mamoudou, Toure & Jamel, Trabelsi & Frédéric, Dufourt, 2009. "Empirical evaluation of nominal convergence in Czech Republic, Poland and Hungary (CPH)," Economic Modelling, Elsevier, vol. 26(5), pages 993-999, September.
  • Handle: RePEc:eee:ecmode:v:26:y:2009:i:5:p:993-999
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    References listed on IDEAS

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    Cited by:

    1. Minea, Alexandru & Rault, Christophe, 2011. "External monetary shocks and monetary integration: Evidence from the Bulgarian currency board," Economic Modelling, Elsevier, vol. 28(5), pages 2271-2281, September.
    2. Claude Diebolt & Mamoudou Toure & Jamel Trabelsi, 2012. "Monetary Credibility Effects on Inflation Dynamics: A Macrohistorical Case Study," Working Papers 12-04, Association Française de Cliométrie (AFC).
    3. Ronayne, David, 2011. "Which Impulse Response Function?," The Warwick Economics Research Paper Series (TWERPS) 971, University of Warwick, Department of Economics.

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