THE IMPACT OF ECONOMIC CRISIS ON INFLATION CONVERGENCE IN THE EUROPEAN UNION. A PANEL DATA APPROACH
Abstract
The aim of this research is to assess the convergence rate of the inflation in European Union 28 (EU-28) and to evaluate the impact of recent economic crisis on the convergence process in inflation. Therefore, a panel data approach was used, the unit root tests for stationary indicating enough evidence for convergence in the period from 2002 to 2013. However, a decline in the convergence process was observed during the economic crisis (2008-2013) compared to the previous period of the same length (2002-2007), the convergence rate decreasing with 3.98 percentage points.References
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