Inflation Differentials in the EU : A Common (Factors) Approach with Implications for EU8 Euro Adoption Prospects »
Series: IMF Working Papers
Author(s): International Monetary Fund
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 January 2008
Keywords: generalized dynamic factors model, euro adoption, central bank, price level, monetary policy, relative price,
This paper explores inflation determinants within the EU and implications for new members' euro adoption plans. Factor analysis partitions observed inflation in EU25 countries into common-origin and country-specifi...