Naslov
The Impact of Demand and Supply Shocks from EMU on Business Cycles of Central and Eastern European Countries

Autori
Broz, Tanja

Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, neobjavljeni rad, znanstveni

Skup
GDN/CERGE-EI RRC 2014 Workshop

Mjesto i datum
Prag, Češka Republika, 19.08.2007. - 20.08.2007

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
supply and demand shocks; EMU; CEE countries

Sažetak
This paper aims at analysing correlation of demand and supply shocks between the EMU and the CEECs in order to see whether there is some degree of business cycles coordination between them. The main interest will be to investigate the impact on Croatia and compare it with other CEECs. Croatia will be of interest in this paper since there is a lack of empirical research on this topic which include Croatia in their sample. Information on the correlation of demand and supply shocks between the European monetary union and CEECs is important if a country wants to join a monetary union, since synchronisation of business cycles and policy coordination will have significant impact on willingness to enter to the monetary union (except if the decision is political one). And since Croatia has started its road towards the EU, it should be expected that Croatia will join the EMU, since there is no opt out clause for new members. In order to gather results, supply and demand shocks are extracted from data using Blanchard and Quah (1989) methodology and then correlations of shocks between EMU and CEECs are calculated as well as size of shocks and speed of adjustments. Results indicate that Croatia is at the moment far from being ready for the common monetary policy with the EMU, while among other CEE countries Slovenia and Latvia, which in fact first applied for the EMU, have the closest connection of their business cycle with the EMU.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA