During the 1970s and early 1980s, Spain suffered high rates of inflation but inflation declined and by 1997 inflation … had fallen to approximately 2 percent. To fight inflation, Spain implemented austere monetary programs, joined the EMS in … 1989, enacted central bank autonomy in 1994, and introduced inflation targets in January 1995. Certainly, these and other …

This paper studies two aspects of the behaviour of provincial relative prices in Spain: the relevance and the nature of … provincial inflation divergences and relative price shifts. Inflation differentials are found to be small (the range is less than …