Register  |  Login  |  Inquiries  |  Sitemap
Advanced Search
Journal of Economic Integration 1998 December;13(4) :586-605.
DOI: https://doi.org/10.11130/jei.1998.13.4.586
Inflation and Uncertainty: Does the EMS Participation Play Any Role?
Nicholas Apergis 
University of Macedonia
Copyright ©1998 Journal of Economic Integration
ABSTRACT
This paper examines whether European Monetary System (EMS) membership has affected the link between inflation and inflation uncertainty. ARCH measures of conditional inflation volatility and Granger-causality tests for nine OECD countries over the period 1980-1994 indicate that in non-EMS countries - in these countries a monetary target seems to have been closely followed - inflation seems to determine the behaviour of inflation uncertainty. By contrast, in EMS countries - these countries have geared their monetary policies to an exchange rate target - inflation seems to have no impact on inflation uncertainty. This finding is probably due first, to the absence of any institutional restriction that characterises non-EMS membership, on the manner the monetary policy is pursued, and second, to the fact that under a monetary rule, any institutional or regulatory changes in the monetary sector are expected to fall more adversely upon inflation as well as inflation uncertainty. (JEL Classi fication: E31)
TOOLS
PDF Links  PDF Links
Full text via DOI  Full text via DOI
Download Citation  Download Citation
Supplement  Supplement
  E-Mail
Share:      
METRICS
0
Crossref
0
Scopus
943
View
2
Download
Editorial Office
Center for Economic Integration, Sejong Institution, Sejong University, 209, Neungdong-Ro, Gwangjin-Gu,
Seoul, 05006, Korea
TEL : +82-2-3408-3338    FAX : +82-2-3408-3338   E-mail : jei@sejong.ac.kr
Browse Articles |  Current Issue |  For Authors and Reviewers |  About
Copyright© by Center for Economic Integration. All right reserved.