Inflation and Euro Memberships: Is there a Relation?

Johannes Kabderian Dreyer, Peter A. Schmid

Publikation: KonferencebidragKonferenceabstrakt til konferenceForskningpeer review

Resumé

The aim of this article is to investigate the relation between Euro membership and inflation. In order to do so, we construct two models that explain inflation using nonmonetary variables. For our estimations, we collect yearly panel data for the 28 members of the European Union during the first 19 years of the Euro (from 1998 to 2016). Because of the problem of endogeneity associated to some of our variables, we use the panel GMM according to Arellano and Bond (1991) to perform all estimations. Results for the estimations of our coefficients do not indicate a relation between membership in the Eurozone and inflation rates, neither for the short nor for the long-term. Thus, this article can be considered contra-evidence for statements that the Euro enhances short-term inflation of its new members or that it reduces permanent inflation rates.
OriginalsprogEngelsk
Publikationsdato2017
StatusUdgivet - 2017
Begivenhed16th International Conference on Finance and Banking: Rethinking Risk in Financial Markets and Institutions - Hotel Mercure, Ostrava, Tjekkiet
Varighed: 11 okt. 201712 okt. 2017
Konferencens nummer: 16
http://www.icfb.cz/

Konference

Konference16th International Conference on Finance and Banking
Nummer16
LokationHotel Mercure
LandTjekkiet
ByOstrava
Periode11/10/201712/10/2017
Internetadresse

Citer dette

Dreyer, J. K., & Schmid, P. A. (2017). Inflation and Euro Memberships: Is there a Relation?. Abstract fra 16th International Conference on Finance and Banking, Ostrava, Tjekkiet.
Dreyer, Johannes Kabderian ; Schmid, Peter A. . / Inflation and Euro Memberships: Is there a Relation?. Abstract fra 16th International Conference on Finance and Banking, Ostrava, Tjekkiet.
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abstract = "The aim of this article is to investigate the relation between Euro membership and inflation. In order to do so, we construct two models that explain inflation using nonmonetary variables. For our estimations, we collect yearly panel data for the 28 members of the European Union during the first 19 years of the Euro (from 1998 to 2016). Because of the problem of endogeneity associated to some of our variables, we use the panel GMM according to Arellano and Bond (1991) to perform all estimations. Results for the estimations of our coefficients do not indicate a relation between membership in the Eurozone and inflation rates, neither for the short nor for the long-term. Thus, this article can be considered contra-evidence for statements that the Euro enhances short-term inflation of its new members or that it reduces permanent inflation rates.",
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Dreyer, JK & Schmid, PA 2017, 'Inflation and Euro Memberships: Is there a Relation?' 16th International Conference on Finance and Banking, Ostrava, Tjekkiet, 11/10/2017 - 12/10/2017, .

Inflation and Euro Memberships: Is there a Relation? / Dreyer, Johannes Kabderian; Schmid, Peter A. .

2017. Abstract fra 16th International Conference on Finance and Banking, Ostrava, Tjekkiet.

Publikation: KonferencebidragKonferenceabstrakt til konferenceForskningpeer review

TY - ABST

T1 - Inflation and Euro Memberships: Is there a Relation?

AU - Dreyer, Johannes Kabderian

AU - Schmid, Peter A.

PY - 2017

Y1 - 2017

N2 - The aim of this article is to investigate the relation between Euro membership and inflation. In order to do so, we construct two models that explain inflation using nonmonetary variables. For our estimations, we collect yearly panel data for the 28 members of the European Union during the first 19 years of the Euro (from 1998 to 2016). Because of the problem of endogeneity associated to some of our variables, we use the panel GMM according to Arellano and Bond (1991) to perform all estimations. Results for the estimations of our coefficients do not indicate a relation between membership in the Eurozone and inflation rates, neither for the short nor for the long-term. Thus, this article can be considered contra-evidence for statements that the Euro enhances short-term inflation of its new members or that it reduces permanent inflation rates.

AB - The aim of this article is to investigate the relation between Euro membership and inflation. In order to do so, we construct two models that explain inflation using nonmonetary variables. For our estimations, we collect yearly panel data for the 28 members of the European Union during the first 19 years of the Euro (from 1998 to 2016). Because of the problem of endogeneity associated to some of our variables, we use the panel GMM according to Arellano and Bond (1991) to perform all estimations. Results for the estimations of our coefficients do not indicate a relation between membership in the Eurozone and inflation rates, neither for the short nor for the long-term. Thus, this article can be considered contra-evidence for statements that the Euro enhances short-term inflation of its new members or that it reduces permanent inflation rates.

M3 - Conference abstract for conference

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Dreyer JK, Schmid PA. Inflation and Euro Memberships: Is there a Relation?. 2017. Abstract fra 16th International Conference on Finance and Banking, Ostrava, Tjekkiet.