UID:
edocfu_9958098533602883
Format:
1 online resource (28 p.)
ISBN:
1-4623-1950-5
,
1-4527-8139-7
,
1-283-51658-6
,
9786613829030
,
1-4519-1184-X
Series Statement:
IMF working paper ; WP/07/167
Content:
This paper's analysis of growth and inflation dispersions in the euro area reveals several findings. First, these dispersions have declined appreciably since EMU; remaining dispersions are small but persistent, relating mainly to country-specific shocks, not differences in the transmission of common shocks. Second, the different behavior of interest rates just before and after the introduction of the euro has contributed significantly to growth dispersions. However, this has been a one-off shock whose effects, particularly on construction, should be declining over time. Third, financial sector integration could do much more to insure countries against shocks and increase consumption smoothing.
Note:
"July 2007".
,
Contents; I. Introduction; II. Literature Review; III. Analytical Framework and Estimation Results; A. Common versus country-specific shocks; B. Country-specific developments and income and price level convergence; C. Persistence of country-specific developments; D. Shock transmission and relative importance of channels; E. Cross-country consumption and income smoothing; IV. Conclusions; References; Figures; 1. Growth and Inflation Dispersions; 2. Unit Labor Costs and Current Account; 3. Contribution of Common Shocks to Inflation and Growth, Pre-EMU and EMU
,
4a. Contribution of Country-specific Shocks to Growth Dispersions, Pre-EMU and EMU4b. Contribution of Country-specific Shocks to Growth Dispersions, Pre-EMU and EMU (Concluded); 5a. Contribution of Country-specific Shocks to Inflation Dispersions, Pre-EMU and EMU; 5b. Contribution of Country-specific Shocks to Inflation Dispersions, Pre-EMU and EMU (Concluded); 6. Interest Rates and Growth Dispersions; 7. House Prices and Growth Dispersions; 8. Impulse Response of Output to House Price Shock; Appendixes; Dynamic General Equilibrium Model
,
English
Additional Edition:
ISBN 1-4518-6731-X
Language:
English
