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L'influence du régime de change sur l'inflation dans les pays adhérents

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  • Fabrizio Coricelli
  • Boštjan Jazbec
  • Igor Masten

Abstract

This paper analyzes the link between the choice of exchange rate regime and inflationary performance in four EU accession countries: the CzechRepublic, Hungary, PolandandSlovenia(CEEC-4). Thefindingsgeneratea clearranking of the countries by magnitude of pass-through effect and the importance of exchange rate shocks to overall inflationary performance. We find, in particular, that a perfect pass-through effect associated with an accommodative exchange rate policy can become an important source of inflationary pressure. The analysis suggests that early adoption of the euro could be the most effective way for the CEEC-4 to reduce inflation.

Suggested Citation

  • Fabrizio Coricelli & Boštjan Jazbec & Igor Masten, 2004. "L'influence du régime de change sur l'inflation dans les pays adhérents," Economie & Prévision, La Documentation Française, vol. 163(2), pages 51-61.
    • Handle: RePEc:cai:ecoldc:ecop_163_0051
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