Are Non Euro Area Eu Countries Importing Low Inflation From The Euro Area
Download Are Non Euro Area Eu Countries Importing Low Inflation From The Euro Area full books in PDF, epub, and Kindle. Read online free Are Non Euro Area Eu Countries Importing Low Inflation From The Euro Area ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
| Author | : Mr.Plamen Iossifov |
| Publisher | : International Monetary Fund |
| Total Pages | : 34 |
| Release | : 2014-10-22 |
| Genre | : Business & Economics |
| ISBN | : 1484389751 |
The synchronized disinflation across Europe since end-2011 raises the question of whether non-euro area EU countries are affected by the undershooting of the euro area inflation target. To shed light on this issue, we estimate an open-economy, New Keynsian Phillips curve, in which we control for imported inflation. Regression results suggest that falling food and energy prices have been the main disinflationary driver. But low core inflation in the euro area has also had a clear and significant impact. Countries with more rigid exchange-rate regimes and higher share of foreign value added in domestic demand have been more affected. The scope for monetary response to low inflation in non-euro area EU countries depends on concerns about financial stability and unanchoring of inflationary expectations, as well as on exchange rate regime and capital flows dynamics.
| Author | : Mr.Jeffrey R. Franks |
| Publisher | : International Monetary Fund |
| Total Pages | : 47 |
| Release | : 2018-01-23 |
| Genre | : Business & Economics |
| ISBN | : 1484338499 |
We examine economic convergence among euro area countries on multiple dimensions. While there was nominal convergence of inflation and interest rates, real convergence of per capita income levels has not occurred among the original euro area members since the advent of the common currency. Income convergence stagnated in the early years of the common currency and has reversed in the wake of the global economic crisis. New euro area members, in contrast, have seen real income convergence. Business cycles became more synchronized, but the amplitude of those cycles diverged. Financial cycles showed a similar pattern: sychronizing more over time, but with divergent amplitudes. Income convergence requires reforms boosting productivity growth in lagging countries, while cyclical and financial convergence can be enhanced by measures to improve national and euro area fiscal policies, together with steps to deepen the single market.
| Author | : Philip R. Lane |
| Publisher | : International Monetary Fund |
| Total Pages | : 66 |
| Release | : 2007-06 |
| Genre | : Business & Economics |
| ISBN | : |
Although Europe in the aggregate is a not a major contributor to global current account imbalances, its trade and financial linkages with the rest of the world mean that it will still be affected by a shift in the current configuration of external deficits and surpluses. We assess the macroeconomic impact on Europe of global current account adjustment under alternative scenarios, emphasizing both trade and financial channels. Finally, we consider heterogeneous exposure across individual European economies to external adjustment shocks.
| Author | : Roberta Colavecchio |
| Publisher | : |
| Total Pages | : |
| Release | : 2020 |
| Genre | : |
| ISBN | : 9789289940054 |
How long does it take for exchange rate changes to pass through into in ation? Does it make a difference whether the exchange rate depreciates or appreciates? Do relatively large exchange rate changes entail more exchange rate pass-through? In this paper, we examine possible non-linearities in the transmission of exchange rate movements to import and consumer prices in all 19 euro area countries as well as the euro area as a whole from 1997 to 2019Q1. We extend a standard single-equation linear framework with additional interaction terms to account for possible non-linearities and apply local projections to obtain state-dependent impulse response functions. We find that (i) euro area consumer and import prices respond significantly to exchange rate movements after one year, responding more when the exchange rate change is relatively large; and (ii) euro appreciations and depreciations affect the level of euro area exchange rate pass-through in a symmetric fashion; (iii) for euro area countries results differ for import and consumer prices and across countries.
| Author | : International Monetary Fund. European Dept. |
| Publisher | : International Monetary Fund |
| Total Pages | : 38 |
| Release | : 2018-07-19 |
| Genre | : Business & Economics |
| ISBN | : 1484368967 |
This Selected Issues paper focuses on long-term impact of Brexit on the European Union (EU). This paper examines consequences of Brexit on the EU27 under various post-Brexit scenarios by using two different complementary approaches. Our results, which are broadly in line with recent findings in the literature, are twofold. First, Brexit would have negative effects on the EU27 as well, given the depth and the complexity of the EU-U.K. integration. Similar to various empirical studies, it has been observed that the estimated long-term output and employment losses (in percent) for the EU27 in the study are on average lower than the corresponding losses for the UK estimated in the literature. The level of output and employment are estimated to fall at most by up to 1.5 percent and 0.7 percent in the long run in the event of a ‘hard’ Brexit scenario, respectively. A “soft” Brexit outcome would lead to much lower losses.
| Author | : Eva Ortega |
| Publisher | : |
| Total Pages | : |
| Release | : 2020 |
| Genre | : |
| ISBN | : 9789289942478 |
Aggregate exchange rate pass-through (ERPT) to import and consumer prices in the EU is currently lower than it was in the 1990s and is non-linear. Low estimated aggregate ERPT to consumer prices does not at all mean that exchange rate movements do not have an impact on inflation, as aggregate rules of thumb mask substantial heterogeneities across countries, industries and time periods owing to structural, cyclical and policy factors. Looking also at new micro evidence, four key structural characteristics explain ERPT across industries or sectors: (i) import content of consumption, (ii) share of imports invoiced in own currency or in a third dominant currency, (iii) integration of a country and its trading partners in global value chains, and (iv) market power. In the existing literature there is also a robust evidence across models showing that each shock which causes the exchange rate to move has a different price response, meaning that the combination of shocks that lies behind the cycle at any point in time has an impact on ERPT. Finally, monetary policy itself affects ERPT. Credible and aggressive monetary policy reduces the observed ex post ERPT, as agents expect monetary policy to counteract deviations of inflation from target, including those relating to exchange rate fluctuations. Moreover, under the effective lower bound, credible non-standard monetary policy actions result in greater ERPT to consumer prices. This paper recommends moving away from rule-of-thumb estimates and instead using structural models with sufficient feedback loops, taking into account the role of expectations and monetary policy reactions, to assess the impact of exchange rate changes when forecasting inflation.
| Author | : Peter Bekx |
| Publisher | : |
| Total Pages | : 44 |
| Release | : 1998 |
| Genre | : European Union countries |
| ISBN | : |
La introduccion del euro sera un acontecimiento importante en el sistema monetario internacional. El objeto de este trabajo es examinar sus implicaciones en paises terceros mediante el analisis de los distintos canales de transmision a traves de los cuales la UEM afectara a los paises terceros. Comienza con los mecanismos de transmision del comercio internacional: el impacto de un mayor crecimiento en el area del euro, los efectos desbordamiento de la mayor sincronizacion de los ciclos en la UE, y el uso del euro en la facturacion. Continua con los cambios que afectaran a los mercados financieros: los relacionados con el euro como vehiculo de monetario en los mercados de divisas, su uso en las carteras privadas y su papel en los prestamos internacionales. La ultima parte trata el uso oficial del euro. Sus implicaciones para la politica de cambios de los paises no comunitarios y para la gestion de sus reservas. (pgp).
| Author | : Sibel Yelten |
| Publisher | : International Monetary Fund |
| Total Pages | : 26 |
| Release | : 2006-06 |
| Genre | : Business & Economics |
| ISBN | : |
Debates surrounding the adoption of a common currency have focused on its benefits weighed against the long-term costs of losing monetary independence. These debates have assumed that the penalty for not adopting a common currency is the maintenance of the status quo. This paper uses the Sjaastad model to analyze the price-making power of major currencies with regard to the prices of traded goods in small countries that have not adopted the euro and uses the Bayoumi-Eichengreen OCA index methodology to shed further light on changes in Europe. The empirical evidence suggests that small countries that have not adopted the euro have increasingly seen a change in the determinants of their traded goods prices. This seems to contrast with the experience of small countries that adopted the euro. The results need to be interpreted carefully, given the short time series.
| Author | : Andreas Jobst |
| Publisher | : International Monetary Fund |
| Total Pages | : 48 |
| Release | : 2016-08-10 |
| Genre | : Business & Economics |
| ISBN | : 1475524471 |
More than two years ago the European Central Bank (ECB) adopted a negative interest rate policy (NIRP) to achieve its price stability objective. Negative interest rates have so far supported easier financial conditions and contributed to a modest expansion in credit, demonstrating that the zero lower bound is less binding than previously thought. However, interest rate cuts also weigh on bank profitability. Substantial rate cuts may at some point outweigh the benefits from higher asset values and stronger aggregate demand. Further monetary accommodation may need to rely more on credit easing and an expansion of the ECB’s balance sheet rather than substantial additional reductions in the policy rate.
| Author | : Marcus Goncalves |
| Publisher | : Business Expert Press |
| Total Pages | : 132 |
| Release | : 2016-07-25 |
| Genre | : Business & Economics |
| ISBN | : 1631575538 |
Nearly seven decades ago, six countries in Western Europe (Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands) decided to take economic cooperation to the next level. The vision of the EU founding states, epitomized by the Schuman Declaration in 1950, was to tie their economies so closely together that war would become impossible. Robert Schuman, author of the plan, believed Europe could not be made all at once, or according to a single plan. It would have to be built through concrete achievements which first create a de facto solidarity. The countries within the “European Community” benefited enormously from free trade and common economic policies, in particular structural funds designed to foster convergence by funding infrastructure and investments in poorer regions. This book examines how similar transitions and integration into the European Union are experienced in individual central and eastern European states through the use of country scans in the regional blocks of CEE, SEE, and CIS.
