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Inflation in a Fully-Euroised Economy: Could Inflation Differentials Threaten Competitiveness?

Author

Listed:
  • Marijana Mitrović-Mijatović

    (Central bank of Montenegro)

  • Maja Ivanović

    (Central bank of Montenegro)

Abstract

This paper analyses inflation in Montenegro, a country which uses euro outside the euro area, and investigates the factors which contribute to price differentials in Montenegro relative to the euro area. Furthermore, the paper examines whether changes in the real effective exchange rates, which in Montenegro`s case follow the path of price differentials, may have any influence on country`s competitiveness.

Suggested Citation

  • Marijana Mitrović-Mijatović & Maja Ivanović, 2017. "Inflation in a Fully-Euroised Economy: Could Inflation Differentials Threaten Competitiveness?," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 6(2), pages 101-124.
    • Handle: RePEc:cbk:journl:v:6:y:2017:i:2:p:101-124
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    File URL: http://www.cbcg.me/repec/cbk/journl/vol6no2-6.pdf
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    Citations

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    Cited by:

    1. Agranovich, Mark, 2014. "Methodical Issues of Comparative Assessment of Subnational Educational Systems," Published Papers re9025, Russian Presidential Academy of National Economy and Public Administration.

    More about this item

    Keywords

    euroisation; inflation differentials; real effective exchange rate; competitiveness.;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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