Groeneveld, Johannes M., 1965-

Bibliographic record and links to related information available from the Library of Congress catalogList of Figures vii List of Tables ix Acknowledgements xi 1. Introduction 1 1 Background 1 2 A preliminary look at inflation 3 3 Outline 5 2. The P*-Framework: Theory and Backgrounds 8 1 Introduction 8 2 Theoretical and methodological underpinnings of the P'-model 9 3 Technical aspects 19 Appendix 2A Unit roots: theory and testing strategy 28 3. Testing the P*-Model for Four Initial ERM Members 36 1 Introduction 36 2 A preliminary look at the actual data 37 3 The determination of the price gaps 46 4 Regression results 65 5 Concluding remarks 87 4. Money and Prices in a Small EMU 93 1 Introduction 93 2 The extended P'-model 94 3 Aggregation issues 97 4 The actual and equilibrium European variables 101 5 Technical aspects of the construction of European equilibrium variables 113 6 Economic distortions in Europe: theoretical and policy considerations 118 7 Regression results 121 8 Concluding remarks 136 5. Monetary Spillover Effects from the ERM to Austria 144 1 Introduction 144 2 A preliminary look at the data and the price gaps for Austria 145 3 The impact of national and European monetary factors on Austrian prices 150 4 Concluding remarks 152 6. Direct Inflation Targeting: Conceptual and Empirical Considerations 154 1 Introduction 154 2 Practical and theoretical backgrounds 155 3 A preliminary look at the data 160 4 The data generating process of inflation 168 5 Inflation and interest rate dynamics 175 6 What monetary strategy for the ECB: some preliminary thoughts 192 7. About the Ins and Outs 195 1 Introduction 195 2 Convergence in Europe: a brief review of the literature 196 3 Some stylized facts 198 4 An empirical analysis of convergence in Europe 202 5 Economic performance and long-term interest rates 219 6 Sununary and some policy considerations 226 8. Summary and Concluding Remarks 230 1 Summary 230 2 Concluding remarks 233 References 235 Index 251