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Inflation Linkages Within The Eurozone: Core vs. Periphery

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  • Georgios Magkonis
  • Abhijit Sharma

Abstract

We examine the process of inflation transmission among GIIPS countries (Greece, Ireland, Italy, Portugal and Spain) and Germany. Our findings suggest that inflation spillovers have increased since 2001. We also find that peripheral economies are (dis‐)inflation transmitters to the core. This finding is significant for policy formulation, given the very low inflation environment that currently exists in the Euro area and the macroeconomic implications that arise from this.

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  • Georgios Magkonis & Abhijit Sharma, 2019. "Inflation Linkages Within The Eurozone: Core vs. Periphery," Scottish Journal of Political Economy, Scottish Economic Society, vol. 66(2), pages 277-289, May.
    • Handle: RePEc:bla:scotjp:v:66:y:2019:i:2:p:277-289
    DOI: 10.1111/sjpe.12184
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    2. Piotr Nowaczyk & Joanna Hernik, 2020. "Adopting the Euro will Cause an Increase in Prices: A Study on Inflationary Processes in Euro Area Member States," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 377-403.

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