Asymmetric Dynamics of Inflation Inertia in Some Selected Non-Eurozone European Countries

Relevance. Inflation inertia refers to the persistence of inflation over time and can be caused by a variety factors, including expectations about future inflation, structure economy, behavior economic agents. Over past two decades, European economy has grappled with range challenges currently seeks mitigate negative impacts global pandemic. Research objective. Persistent lead uncertainty, decreased investment, loss confidence in an economy. Non-eurozone economies also face controlling due such factors as lack monetary integration eurozone, limited access Central Bank's resources, unified currency. Hence, for more effective policy these countries, it is necessary measure understand inertia. This paper offers novel empirical study dynamics seven EU that are not part eurozone. Data methods. To achieve research objective, three non-linear unit root tests employed consider both structural changes regime switching. These allowed inclusion almost all observed series. In addition, involve use dynamic rolling windows sample approach order provide sensitive measurements effect time-varying shocks on Results. According static analysis 200 observations, Bulgaria, Croatia, Czech Republic have Sweden, Romania, Hungary, Poland do when switching change considered. However, Croatia show mostly non-stationary sampling. Hungary persistent even though was detected analysis. The fade out Poland, Sweden dynamics. If ignored, misleading results Conclusions. influenced pandemic, or regional conflicts preferences. successful management Romania may serve model other demonstrated ability effectively address posed