<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper analyses inflation in Montenegro, a country which uses euro outside the euro area, and investigates the factors which contribute to price differentials in Montenegro relative to the euro area. Furthermore, the paper examines whether changes in the real effective exchange rates, which in Montenegro’s case follow the path of price differentials, may have any influence on country’s competitiveness.</p></abstract>

This paper analyses inflation in Montenegro, a country which uses euro outside the euro area, and investigates the factors which contribute to price differentials in Montenegro relative to the euro area. Furthermore, the paper examines whether changes in the real effective exchange rates, which in Montenegro’s case follow the path of price differentials, may have any influence on country’s competitiveness.

Inflation in a Fully-Euroised Economy: Could Inflation Differentials Threaten Competitiveness?

Journal of Central Banking Theory and Practice

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

This paper analyses inflation in Montenegro, a country which uses euro outside the euro area, and investigates the factors which contribute to price...

Inflation in a Fully-Euroised Economy: Could Inflation Differentials Threaten Competitiveness?

Published Online: May 22, 2017

Page range: 101 - 124

Received: Jan 27, 2017

Accepted: Apr 10, 2017

DOI: https://doi.org/10.1515/jcbtp-2017-0015

Keywords
euroisation, inflation differentials, real effective exchange rate, competitiveness

© 2017 Central Bank of Montenegro

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

Inflation in a Fully-Euroised Economy: Could Inflation Differentials Threaten Competitiveness?

Published Online: May 22, 2017

Page range: 101 - 124

Received: Jan 27, 2017

Accepted: Apr 10, 2017

DOI: https://doi.org/10.1515/jcbtp-2017-0015

Keywordseuroisation, inflation differentials, real effective exchange rate, competitiveness

© 2017 Central Bank of Montenegro

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

Keywords
euroisation, inflation differentials, real effective exchange rate, competitiveness