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The dynamics of core and periphery in the European monetary union: a new approach

Campos, Nauro F. and Macchiarelli, Corrado (2021) The dynamics of core and periphery in the European monetary union: a new approach. Journal of International Money and Finance, 112. ISSN 0261-5606

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Identification Number: 10.1016/j.jimonfin.2020.102325


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).

Item Type: Article
Official URL:
Additional Information: © 2020 The Authors
Divisions: European Institute
Subjects: H Social Sciences > HG Finance
H Social Sciences > HB Economic Theory
J Political Science > JN Political institutions (Europe)
JEL classification: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C50 - General
E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E30 - General
N - Economic History > N1 - Macroeconomics and Monetary Economics; Growth and Fluctuations > N10 - General, International, or Comparative
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F40 - General
Date Deposited: 13 Jan 2022 12:57
Last Modified: 14 Jan 2022 09:57

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