Original scientific paper
https://doi.org/10.46672/aet.11.1.1
LARGE EUROZONE MEMBER STATES’ CONTRIBUTIONS TO MONETARY AGGREGATES AND THE DYNAMICS OF THE HARMONIZED INDEX OF CONSUMER PRICES (HICP)
Ante Samodol
orcid.org/0000-0002-6609-2396
; Libertas međunarodno sveučilište
Abstract
This research analyzes the impact of monetary aggregates growth on inflation trends in Eurosystem members, with particular emphasis on the differences between large (Germany, France, Italy and Spain) and small (Slovenia and Croatia) Eurosystem members states. The aim was to determine whether there is a statistically significant link between money supply growth rates (M1 and M3) and the Harmonized Index of Consumer Prices (HICP) in the period 2015-2024, as well as the possible spillover of inflationary pressures from large to smaller member states. The results show that the effect of monetary supply on inflation is not unambiguous and varies among countries, with Germany and France showing statistically significant links, while in Italy and Spain such effects have not been confirmed. Furthermore, there was no clear evidence of systematic inflation spillovers from larger to smaller member states, except in the Germany-Slovenia relationship. These findings point to the complexity of inflation dynamics in the euro area and the need for further research involving a wider range of variables on the asymmetry of contributions to monetary aggregates and inflation rates among Eurozone member states.
Keywords
Eurozone member states, monetary aggregates, HICP, inflation spillover
Hrčak ID:
332274
URI
Publication date:
17.6.2025.
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