The dynamics of core and periphery in the European monetary union: A new approach
- Journal Article
Rights / licenseCreative Commons Attribution 4.0 International
Despite numerous studies about core-periphery in monetary unions, few focus on their dynamics. This paper (i) presents new theory-based, continuous and dynamic measures of the probability of a country being classified as core or periphery; (ii) estimates the determinants of the changes in this probability over time and across countries; and (iii) uses the Phillips-Sul convergence panel framework to investigate the behaviour of core and periphery groups over time. Our main results indicate that the post-EMU decrease of the core-periphery gap that we document was mainly driven by the adoption of the euro and by increasing competition (lower mark-ups). Show more
Journal / seriesJournal of International Money and Finance
Pages / Article No.
SubjectEuro; Core-periphery; Competition; Symmetry; Convergence
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