Title :
Would the Balassa-Samuelson effect be real concern for ECB in the enlarged monetary union?
Author_Institution :
Hangzhou Inst. of Service Eng., Hangzhou Normal Univ., Hangzhou, China
Abstract :
This paper discusses the influence of Balassa-Samuelson effect on enlarged European monetary union and corresponding adjustment of ECB monetary policy. Firstly productivity divergence and Balassa-Samuelson effect in new EU members (accession and acceding countries) is illuminated, include some arguments on extent of influence. Then follows challenge brought by enlargement to ECB monetary policy and its probable adjustment. In conclusion Balassa-Samuelson effect will be real concern of ECB but not has priority over all other aspects.
Keywords :
inflation (monetary); international collaboration; international trade; productivity; Balassa-Samuelson effect; ECB monetary policy; enlarged European monetary union; inflation; productivity divergence; Decision making; Economic indicators; Europe; Exchange rates; Productivity; Stability criteria; Balassa-Samuelson effect; ECB monetary policy; Maastricht dilemma; enlarged monetary union; inflation;
Conference_Titel :
Information and Financial Engineering (ICIFE), 2010 2nd IEEE International Conference on
Conference_Location :
Chongqing
Print_ISBN :
978-1-4244-6927-7
DOI :
10.1109/ICIFE.2010.5609301
