Sinn, Hans-Werner; Reutter, Michael - 2021
the Balassa model, the paper calculates a minimum aggregate inflation rate which is compatible with the requirement that … no country face a deflation. This minimum aggeragate inflation rate is 0.94% in the euro-11 countries and 1.13% in an … impossible to find a common monetary policy that will result in price stability in all countries. Based on empirical estimates of …