<abstract xmlns="http://www.w3.org/1999/xhtml"><p>We propose using a simple Taylor rule to evaluate business cycle convergence of the Czech Republic, Hungary, and Poland with the Eurozone. Our findings indicate an ongoing convergence of those CEE countries to the Eurozone, but with instabilities and heterogeneity between the countries. Especially Poland has shown a high degree of convergence in recent years. But there are still relevant differences in Taylor rates of each country to the Eurozone of about two percentage points.</p></abstract>

We propose using a simple Taylor rule to evaluate business cycle convergence of the Czech Republic, Hungary, and Poland with the Eurozone. Our findings indicate an ongoing convergence of those CEE countries to the Eurozone, but with instabilities and heterogeneity between the countries. Especially Poland has shown a high degree of convergence in recent years. But there are still relevant differences in Taylor rates of each country to the Eurozone of about two percentage points.

Measuring Nominal and Real Convergence of Selected CEE Countries by the Taylor Rule

Department of Economics, Europa-Universität Viadrina,

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

We propose using a simple Taylor rule to evaluate business cycle convergence of the Czech Republic, Hungary, and Poland with the Eurozone. Our findings...

Measuring Nominal and Real Convergence of Selected CEE Countries by the Taylor Rule

Published Online: Jan 23, 2017

Page range: 9 - 22

DOI: https://doi.org/10.1515/ijme-2016-0024

Keywords
CEE, monetary policy, currency union, convergence, Taylor rule

© 2016 Tobias Böing et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Measuring Nominal and Real Convergence of Selected CEE Countries by the Taylor Rule

Published Online: Jan 23, 2017

Page range: 9 - 22

DOI: https://doi.org/10.1515/ijme-2016-0024

KeywordsCEE, monetary policy, currency union, convergence, Taylor rule

© 2016 Tobias Böing et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
CEE, monetary policy, currency union, convergence, Taylor rule