• 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.
    • 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.