TY  - UNPD
A1  - Beck, Günter W.
A1  - Weber, Axel A.
T1  - Inflation rate dispersion and convergence in monetary and economic unions: lessons for the ECB : [This Version November 2005]
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2005,31
N2  - Using a set of regional inflation rates we examine the dynamics of inflation dispersion within the U.S.A., Japan and across U.S. and Canadian regions. We find that inflation rate dispersion is significant throughout the sample period in all three samples. Based on methods applied in the empirical growth literature, we provide evidence in favor of significant mean reversion (ß-convergence) in inflation rates in all considered samples. The evidence on ó-convergence is mixed, however. Observed declines in dispersion are usually associated with decreasing overall inflation levels which indicates a positive relationship between mean inflation and overall inflation rate dispersion. Our findings for the within-distribution dynamics of regional inflation rates show that dynamics are largest for Japanese prefectures, followed by U.S. metropolitan areas. For the combined U.S.-Canadian sample, we find a pattern of within-distribution dynamics that is comparable to that found for regions within the European Monetary Union (EMU). In line with findings in the so-called 'border literature' these results suggest that frictions across European markets are at least as large as they are, e.g., across North American markets. Klassifikation: E31, E52, E58
T3  - CFS working paper series - 2005, 31 
KW  - Inflation Convergence
KW  - Deflation
KW  - ECB Monetary Policy
KW  - EMU
KW  - Regional Diversity
KW  - USA
KW  - Japan
KW  - Kanada
KW  - Inflation
KW  - Ausbreitung
KW  - Europäische Zentralbank
KW  - Geldpolitik
KW  - Europäische Union
KW  - Währungsunion
Y1  - 2005
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/3053
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-23431
N1  - This Version November 2005, Preliminary Version: November 2003
IS  - This Version November 2005
ER  -