The effects of EU shocks on the newly acceded countries
Barnett, Alina. (2007) The effects of EU shocks on the newly acceded countries. International Journal of Finance & Economics, Vol.12 (No.4). pp. 389-404. ISSN 1099-1158Full text not available from this repository.
Official URL: http://dx.doi.org/10.1002/ijfe.335
This paper analyses the response of seven of the newly acceded countries (NACs) to EU supply and monetary shocks. A typical NAC perceives an EU technology disturbance as a negative supply shock and an EU monetary expansion as a negative demand shock. When we split the seven countries into two groups, results for group 1 which includes the Czech Republic, Hungary, Poland and Slovakia suggest that an EU supply shock feeds through as a demand shock, increasing both prices and output. This suggests trade acts as a channel of EU shock propagation. Monetary disturbances explain 2% and 3% of the output fluctuation of group one and two and 10% and 42% of interest rate variations, respectively. EU shocks are identified as given by Canova and De Nicolo (2002) using sign restrictions of the cross-correlation function of the variables' responses to orthogonal disturbances. These restrictions are derived from a DSGE model.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HG Finance|
|Divisions:||Faculty of Social Sciences > Economics|
|Journal or Publication Title:||International Journal of Finance & Economics|
|Publisher:||John Wiley & Sons, Ltd.|
|Official Date:||October 2007|
|Number of Pages:||16|
|Page Range:||pp. 389-404|
|Access rights to Published version:||Restricted or Subscription Access|
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