Access the full text.
Sign up today, get DeepDyve free for 14 days.
K. Hubrich, Massimiliano Marcellino, Guenter Beck (2006)
Regional Inflation Dynamics within and Across Euro Area Countries and a Comparison with the UsInternational Finance
Steven Buigut, N. Valev (2005)
Is the proposed East African Monetary Union an optimal currency area? a structural vector autoregression analysisWorld Development, 33
Xinpeng Xu (2006)
A currency union for Hong Kong and Mainland ChinaJournal of International Money and Finance, 25
R. Fildes (1992)
Forecasting structural time series models and the kalman filter: Andrew Harvey, 1989, (Cambridge University Press), 554 pp., ISBN 0-521-32196-4International Journal of Forecasting, 8
H. Sahin (2006)
MENA countries as optimal currency areas: Reality or dreamJournal of Policy Modeling, 28
Markus Mentz, Steffen Sebastian (2003)
Inflation Convergence after the Introduction of the EuroEuropean Economics eJournal
P. Phillips (1988)
Testing for a Unit Root in Time Series Regression
Boris Hofmann, Hermann Remsperger (2005)
Inflation differentials among the Euro area countries: Potential causes and consequences ☆Journal of Asian Economics, 16
Guenter Beck, A. Weber (2001)
How Wide are European Borders? New Evidence on the Integration Effects of Monetary Unions
Mark Holmes (2002)
Panel data evidence on inflation convergence in the European UnionApplied Economics Letters, 9
H. Yilmazkuday (2009)
Inflation Targeting and Inflation Convergence within Turkey
B.H. Baltagi
Econometric Analysis of Panel Data
F. Busetti, L. Forni, A. Harvey, F. Venditti (2006)
Inflation Convergence and Divergence within the European Monetary UnionEuropean Central Bank Research Paper Series
A. Maza, J. Villaverde (2007)
A state-space approach to the analysis of economic shocks in SpainJournal of Policy Modeling, 29
P. Siklos, M. Wohar (1997)
Convergence in Interest Rates and Inflation Rates Across Countries and Over TimeReview of International Economics, 5
Steven Buigut, N. Valev (2005)
Eastern and Southern Africa Monetary Integration: A Structural Vector Autoregression AnalysisMonetary Economics
Paul Masson, Catherine Pattillo (2004)
The Monetary Geography of Africa
(2003)
Papers may only be downloaded for personal use only
A. Chhibber (1991)
Africa's rising inflation: causes, consequences, and cures
Patrick Honohan, P. Lane (2004)
Exchange Rates and Inflation Under Emu: An UpdateInternational Finance
P. Clark (1989)
Trend reversion in real output and unemploymentJournal of Econometrics, 40
J. Stock, M. Watson (1988)
A Probability Model of the Coincident Economic IndicatorsNBER Working Paper Series
M. Kawai (1991)
Optimum Currency Areas
Patrick Honohan, P. Lane (1999)
Will the Euro Trigger More Monetary Unions in Africa?Monetary Economics
E. Kočenda, David Papell (1996)
Inflation Convergence within the European Union: A Panel Data AnalysisEuropean Economics: Macroeconomics & Monetary Economics eJournal
M. Shapiro, M. Watson (1988)
Sources of Business Cycle FluctuationsNBER Macroeconomics Annual, 3
Dan Ben-David (1996)
Trade and Convergence Among CountriesJournal of International Economics, 40
Allan Gregory, Allen Head (1999)
Common and country-specific fluctuations in productivity, investment, and the current accountJournal of Monetary Economics, 44
Purpose – The purpose of this paper is to investigate inflation convergence within the East African Community (EAC) as it aspires to become a currency union. Design/methodology/approach – An unobserved dynamic factor model was used to decompose the variation in inflation into a component that is common across the countries in the EAC region and a component that is country specific. Convergence was measured by the percentage of variation in inflation that is common across countries. Findings – The estimated results from the dynamic factor model for the pre‐EAC Treaty (1981:3 to 2000:2) period and post‐EAC Treaty (2000:3 to 2009:1) period suggest that the percentage variation in inflation in the EAC that is explained by the common regional component increased significantly during the post‐Treaty period. Research limitations/implications – One of the limitations of this paper is that it does not address the mechanism through which the convergence in a currency union is achieved. Future research should try to examine the link between convergence and different macroeconomic policies. Practical implications – This paper suggests that the push towards forming a currency union in East Africa has led to a greater degree of inflation synchronization across different countries in the region. Originality/value – The main contribution of this paper is to use an unobserved component model to estimate the degree of inflation synchronization in East African countries.
Indian Growth and Development Review – Emerald Publishing
Published: Apr 20, 2010
Keywords: Monetary policy; Central and East Africa; Inflation; Currencies
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.