Template-Type: ReDIF-Paper 1.0
Author-Name: Juan Carlos Cuestas
Author-Name: Barry Harrison
Title: Testing for stationarity of inflation in Central and Eastern European Countries 
Abstract: In this paper we provide an insight into the inflation dynamics in a panel of Central and
Eastern European countries. These countries are selected because of their increasing
importance in the EU and their likely increased future importance in monetary policy
decisions inside the euro area. By means of unit root testing and allowing for the
possibility of a smooth asymmetric adjustment to equilibrium, we show that inflation rates
in more than half of the countries investigated are stationary processes. Our results imply
evidence against the persistence hypothesis for them. 
File-URL: http://www.ntu.ac.uk/__data/assets/pdf_file/0017/310184/Testing-for-stationarity-of-inflation-in-central-and-eastern-european-countries.pdf
File-Format: Application/pdf
File-Function: First version, 2008
Creation-Date:  2008-09
Classification-JEL: C22, E31, E32
Keywords: Inflation persistence, Unit roots, Nonlinearities
Handle: RePEc:nbs:wpaper:2008/13