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

December 1, 2002

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Format: Chicago

Michael Frenkel, and Christiane Nickel. How Symmetric Are the Shocks and the Shock Adjustment Dynamics Between the Euro Area and Central and Eastern European Countries?, (USA: International Monetary Fund, 2002) accessed September 19, 2024

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.

Subject: Business cycles, Econometric analysis, Economic growth, Economic integration, Economic theory, Inflation, Monetary unions, Prices, Supply shocks, Vector autoregression

Keywords: Business cycles, Central and eastern European country, Countries of the EU, Country, Demand and supply shock, EMU candidate, EMU country, EMU economy, EMU EU country, EMU member, EU country, EU member, Europe, European monetary integration, Inflation, International monetary arrangements and institutions, Monetary unions, Supply and demand demand shock, Supply shocks, Vector autoregression, Western Europe, WP

Publication Details

Pages:

27
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2002/222
Stock No:

WPIEA2222002
ISBN:

9781451875270
ISSN:

1018-5941

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