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Measuring Nominal and Real Convergence of Selected CEE Countries by the Taylor Rule

Author

Listed:
  • Böing Tobias

    (Department of Economics, Europa-Universität Viadrina, Germany)

  • Stadtmann Georg

    (Department of Business and Economics, University of Southern Denmark, Denmark; Department of Economics, Europa-Universität Viadrina, Germany)

  • Sydykova Meerim

    (Department of Economics, Europa-Universität Viadrina, Germany)

Abstract

We propose using a simple Taylor rule to evaluate business cycle convergence of the Czech Republic, Hungary, and Poland with the Eurozone. Our findings indicate an ongoing convergence of those CEE countries to the Eurozone, but with instabilities and heterogeneity between the countries. Especially Poland has shown a high degree of convergence in recent years. But there are still relevant differences in Taylor rates of each country to the Eurozone of about two percentage points.

Suggested Citation

  • Böing Tobias & Stadtmann Georg & Sydykova Meerim, 2016. "Measuring Nominal and Real Convergence of Selected CEE Countries by the Taylor Rule," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 52(1), pages 9-22, December.
    • Handle: RePEc:vrs:ijomae:v:52:y:2016:i:1:p:9-22:n:2
    DOI: 10.1515/ijme-2016-0024
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    References listed on IDEAS

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    More about this item

    Keywords

    CEE; monetary policy; currency union; convergence; Taylor rule;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F15 - International Economics - - Trade - - - Economic Integration

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