I study the effects of entry to the European Monetary Union (EMU) on relative purchasing power parity (PPP) convergence using monthly disaggregated price indices from 32 European countries from 1999 to 2016. I examine the entry of Cyprus, Malta, Slovakia, and Slovenia to the EMU, and I estimate the bands of inaction of relative prices before and after entry using a threshold autoregressive model. I find a positive effect of the EMU on relative PPP convergence: after entry, the bands of inaction with EMU members fell by 17 percent. Cross‐sectional evidence supports the theoretical prediction that bands of inaction are related to transaction costs.

中文翻译：

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欧元缩水了吗？货币联盟中的相对购买力平价收敛*

我使用1999年至2016年来自32个欧洲国家的月度分类价格指数，研究了进入欧洲货币联盟（EMU）对相对购买力平价（PPP）收敛的影响。我研究了塞浦路斯，马耳他，斯洛伐克和斯洛文尼亚的进入到动车组，我使用阈值自回归模型估计进入前后相对价格的无反应区间。我发现EMU对相对的PPP收敛有积极作用：加入后，与EMU成员不作为的幅度下降了17％。横截面证据支持无作为的范围与交易成本相关的理论预测。