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Testing for inflation convergence between the Euro Zone and its CEE partners

By Imed Drine and Christophe Rault

Abstract

Inflation convergence between the Euro Zone and its CEE partners is investigated using panel data methods that incorporate structural shifts. Strong rejections of the unit root hypothesis are found, and therefore evidence of PPP, in the East-European countries for the 1995:1 to 2000:4 period.

DOI identifier: 10.1080/13504850500396322
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