Kouvavas, Omiros; Osbat, Chiara; Reinelt, Timo; … - 2021
Price inflation in the euro area has been stable and low since the Global Financial Crisis, despite notable changes in … output and unemployment. We show that an increasing share of high markup firms is part of the explanation of why inflation … remained stubbornly stable and low in the euro area over the past two decades. For this purpose, we exploit a rich firm …