Favero, Carlo A.; Giavazzi, Francesco - C.E.P.R. Discussion Papers - 2008
(ECB) to study optimal monetary policy in the Euro area (for instance Smets and Wouters, 2004a, 2004b) typically assume … fluctuations and their international comovements. This paper studies monetary policy in the Euro area looking at the variable most … remained true for the ECB, at least so far. Using closed economy models to analyze monetary policy in the Euro is thus …