Σύγκλιση πληθωρισμού και επιτοκίων: η περίπτωση των νέων μελών της ΕΕ

Abstract

This paper addresses the issue or whether there exists evidence in support of inflation and interest rate convergence between the new EU members and the euro area. To address the issue of convergence, we adopt the “complete” and “partial” convergence. The Augmented Dickey-Fuller (ADF) unit root test and the Johansen co integration technique will be employed. The remainder of the paper is organized as follows: Section I summarizes the evolution of the institutional relations between the EU and the new members. Section II reviews literature on nominal convergence as it relates to EU, the acceding countries, and other groups of countries. Section III outlines the appropriate definitions and Section IV describes the methodology followed. Section V describes the data used in the empirical analysis. The unit root and co integration tests results are reported in section VI. The final section offers concluding remarks