• The effect of banking supervision on central bank preferences: Evidence from panel data

      Chortareas, G.; Logothetis, V.; Magkonis, Georgios; Zekente, K. (2016-03)
      We examine the effects of banking supervisory architecture on central bank preferences, quantified through a recently proposed measure of central bank conservatism. Using a dynamic panel data specification we document that central banks serving both monetary policy and banking supervision functions are less inflation conservative than those with only a price stability mandate.
    • Financial Development and Economic Activity in Advanced and Developing Open Economies: Evidence from Panel Cointegration.

      Chortareas, G.; Magkonis, Georgios; Moschos, D.; Panagiotidis, T. (2015-02)
      This study considers the effects of financial development on output in a panel cointegration framework, focusing on the implications of trade and financial openness. Our analysis indicates that after controlling for cross-sectional dependence, the typical relationship between finance and output does not hold in the long run. This relationship, however, is re-established once we account for economic openness. While trade openness emerges as more important for developing countries, financial openness is more important for advanced economies. In the long run, causality runs from financial development to output in the advanced economies, while in developing economies causality is bidirectional. There is no short-run causality between financial development and output, however.
    • The financial development and growth nexus: A meta-analysis

      Magkonis, Georgios; Arestis, P.; Chortareas, G. (2014-08)
      We conduct a meta-analysis of the literature of financial development and economic growth. We cover a large number of empirical studies and estimations that have been published in journal articles. We measure the degree of heterogeneity and identify the causes of the observed differentiation. Among the most significant factors behind this heterogeneity is the choice of financial-variable proxies, the kind of data used as well as whether a study takes into account the issue of endogeneity. Our results suggest that the empirical literature on the finance–growth nexus is not free from publication bias. Also, a genuine positive effect exists between financial development and economic growth.
    • Inflation targeting and inflation convergence: International evidence

      Arestis, P.; Chortareas, G.; Magkonis, Georgios; Moschos, D. (2014-04)
      We examine whether the inflation rates of the countries that pursueinflation targeting policies have converged as opposed to the expe-rience of the OECD non-inflation targeters. Using a methodologyintroduced by Pesaran (2007a), we examine the stationarity prop-erties of the inflation differentials. This approach has the advantageof avoiding setting arbitrarily a specific country as the benchmarkeconomy. Our results indicate that the inflation rates converge irre-spective of the monetary policy framework.
    • The asymmetry of the New Keynesian Phillips Curve in the euro-area

      Chortareas, G.; Magkonis, Georgios; Panagiotidis, T. (2012)
      Using a two-stage quantile regression framework, we uncover significant asymmetries across quantiles for all coefficients in an otherwise standard New Keynesian Phillips Curve (NKPC) for the euro area. A pure NKPC specification accurately captures inflation dynamics at high inflation quantiles.