Title BVP ir infliacijos kitimo skirtumų ir bendros pinigų politikos optimalumo sąryšis /
Translation of Title The relation between differences of GDP growth and inflation rates and optimality of common monetary policy.
Authors Šidlauskaitė, Brigita ; Šeputienė, Janina
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Is Part of Ekonomika ir vadyba: aktualijos ir perspektyvos. 2008, Nr. 4, p. 367-373.. ISSN 1648-9098
Keywords [eng] inflation ; GDP ; supply shock ; demand shock ; economic and monetary union
Abstract [eng] The essence of monetary union derives from the fact that when a country relinquishes its national currency, it also loses the ability to conduct an independent monetary policy. The possible asymmetric shocks of a supply or demand determine the optimality of monetary policy. If there are asymmetric shocks in the union, they might cause inflation in one country and deflation in another one, so different monetary policy should be applied. In practice, shocks are always some mixture of demand and supply movements. The major problem with witch the European Central Bank confronts is how to conduct monetary policy when asymmetric shocks occur. The situation is more complicated when supply shock originates in the country of monetary union. This shock lowers output and increases prices. The ECB is responsible for maintaining price stability, also for stabilizing the economy, if it does not interfere with price stability. The price stability is the primary aim in any case. If countries are affected by asymmetric shocks, the common monetary policy won’t be appropriate for some of them. The countries which differ from the union as a whole have difficulties with stabilizing output and employment. The aim of the article is to analyse the differences of GDP growth rates and inflation rates between the European Monetary Union countries in respect of the possible incongruity when seeking the price stability. Methods of the research: the analysis and the synthesis of scientific literature, analysis of the statistical data, Theil’s inequality coefficient. Differences of GDP growth rates and inflation rates have shown that there were asymmetric shocks of a supply and demand in the European Monetary Union countries. Netherlands, Austria, Belgium and France were identified 373 as countries, which best mach the union as a whole. [...].
Type Journal article
Language Lithuanian
Publication date 2008