How Symmetric Are the Shocks and the Shock Adjustment Dynamics Between the Euro Area and Central and Eastern European Countries?

Author/Editor:

Michael Frenkel ; Christiane Nickel

Publication Date:

December 1, 2002

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

In this paper, we use a structural vector autoregression model to identify and compare demand and supply shocks between euro area countries and central and eastern European countries (CEECs). The shocks and the shock adjustment dynamics of these countries are also compared to EU countries that currently do not participate in the EMU. Focusing on the period 1993-2001, we find that there are still differences in the shocks and in the adjustment process to shocks between the euro area and the CEECs. However, several individual CEECs exhibit shocks and shock adjustment processes that are fairly similar to some euro area countries.

Series:

Working Paper No. 02/222

Subject:

English

Publication Date:

December 1, 2002

ISBN/ISSN:

9781451875270/1018-5941

Stock No:

WPIEA2222002

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

27

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