Convergence, inequality and inflation synchronization: evidence from the Eurozone

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F25%3A43926737" target="_blank" >RIV/62156489:43110/25:43926737 - isvavai.cz</a>

Výsledek na webu

<a href="https://doi.org/10.1007/s10663-025-09646-2" target="_blank" >https://doi.org/10.1007/s10663-025-09646-2</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1007/s10663-025-09646-2" target="_blank" >10.1007/s10663-025-09646-2</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Convergence, inequality and inflation synchronization: evidence from the Eurozone

Popis výsledku v původním jazyce

This paper studies the impact of real convergence in the EU countries on inflation synchronization between these countries and the Eurozone. Inflation co-movement between the Eurozone and the EU countries serves as an important measure of the adequacy of the single monetary policy for both current and future members of the common currency area. We report three major results. First, countries with higher relative GDP per capita in the EU countries report stronger inflation co-movement. Second, the relationship between real convergence and the inflation synchronization is non-linear. Third, lower income inequality is associated with greater inflation co-movement. Our findings suggest that real convergence in the EU is associated with stronger inflation synchronization between the EU countries and Eurozone and more effective common monetary policy in the long run. These results provide support for the &quot;coronation theory&quot; which underscores that monetary integration should follow, rather than precede, the process of real convergence. We show that for the catching-up countries with relatively high GDP per capita the value of waiting for the income gap to narrow is limited as additional convergence implies only moderate increase in inflation co-movement.

Název v anglickém jazyce

Convergence, inequality and inflation synchronization: evidence from the Eurozone

Popis výsledku anglicky

This paper studies the impact of real convergence in the EU countries on inflation synchronization between these countries and the Eurozone. Inflation co-movement between the Eurozone and the EU countries serves as an important measure of the adequacy of the single monetary policy for both current and future members of the common currency area. We report three major results. First, countries with higher relative GDP per capita in the EU countries report stronger inflation co-movement. Second, the relationship between real convergence and the inflation synchronization is non-linear. Third, lower income inequality is associated with greater inflation co-movement. Our findings suggest that real convergence in the EU is associated with stronger inflation synchronization between the EU countries and Eurozone and more effective common monetary policy in the long run. These results provide support for the &quot;coronation theory&quot; which underscores that monetary integration should follow, rather than precede, the process of real convergence. We show that for the catching-up countries with relatively high GDP per capita the value of waiting for the income gap to narrow is limited as additional convergence implies only moderate increase in inflation co-movement.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2025

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Empirica

ISSN

0340-8744

e-ISSN

1573-6911

Svazek periodika

52

Číslo periodika v rámci svazku

3

Stát vydavatele periodika

NL - Nizozemsko

Počet stran výsledku

21

Strana od-do

413-433

Kód UT WoS článku

001435560700001

EID výsledku v databázi Scopus

2-s2.0-86000300288