Growth and Inflation Disparities in Corridor V
Ca Foscari University of Venice - Department of Economics
University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. 19/WP/2006
The paper offers a brief discussion about the role of transport infrastructure in the current growth strategy followed by the EU. As a corridor is the locus where transport infrastructure and growth should interact more effectively, the central part of Corridor V is considered as an interesting case study. A growth scenario for eight countries is provided to show that wide growth disparities are to be expected during the next decade. The final part of the paper speculates about inflation differentials that are likely to emerge when growth differentials tend to persist inside a monetary union. As the Euro zone will be enlarged to host fast-growers in Corridor V such as Slovenia (maybe as soon as 2007), Hungary and the Slovak Republic, growth differentials and the single monetary policy could make it difficult to deliver a common monetary environment.
Number of Pages in PDF File: 19
Keywords: Growth, money demand; inflation; infrastructure, European Union
JEL Classification: O47, E31, E47, H54working papers series
Date posted: November 28, 2006
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