Naslov
Inflation in New EU Member States : A Domestically or Externally Driven Phenomenon?

Autori
Globan, Tomislav ; Arčabić, Vladimir ; Sorić, Petar

Izvornik
Emerging markets finance and trade (1540-496X) 52 (2016), 1; 154-168

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
domestic and external inflation determinants; historical decomposition; inflation; new EU member states; consumer surveys

Sažetak
This paper empirically analyzes the domestic and external inflation determinants for eight non- eurozone new EU member states (NMS), using a structural vector autoregression model. Results indicate that foreign shocks are a major factor in explaining inflation dynamics in the medium run, while the short run inflation dynamics is mainly influenced by domestic shocks. Moreover, the importance of the foreign inflation component has had a rising trend in the pre-crisis period in all NMS and mostly coincided with their accession to the EU. This trend ended with the onset of the global financial crisis. The study implicates the need to augment the classical Taylor rule with foreign factors in case of small open economies.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA