Wickens, Michael R. - C.E.P.R. Discussion Papers - 2007
sustainable in the longer term without drastic changes to other aspects of the EU and, in particular, to fiscal policy. The … competitiveness. A formal theory of inflation in the euro-zone based on an open-economy version of the New Keynesian model is used to … shown that, in effect, this is an inflation tax, requiring high inflation countries to make transfers to low inflation …