Gaiotti, Eugenio; Gavosto, Andrea; Grande, Giuseppe - In: Giornale degli Economisti 57 (1998) 3-4, pp. 297-324
The paper considers four explanations of the recent turnaround in inflation in Italy: the Exchange rate channel that … was the centerpiece of the monetary policy strategy in the preceding decade; domestic aggregate demand; inflation … weight of each story is assessed by way of a vector auto-regression. The results suggest that inflation expectations did …