Giannone, Domenico; Lenza, Michele; Reichlin, Lucrezia - 2009
changes in
nominal variables and the convergence of inflation and interest rates that have taken place since the
early …’s VARs
on output growth and inflation. They identify a core group (Germany, France, Belgium, the Netherlands
and Denmark …) whose supply shocks are both smaller and more correlated across neighboring countries
and a periphery (the UK, Italy, Spain …