This Paper aims at improving the understanding of the transmission of shocks across countries and how this transmission … transmission of shocks from the US to European countries may depend on the values of transition variables such as financial prices …

justified empirically. Both the relation between money and inflation, and between money and aggregate demand, are considered …. Regarding the first relation, it is argued that both the mean and the dynamics of inflation in present-day models are governed … monetary aggregates and inflation in no way requires a direct channel connecting money and inflation. The relevance of money …

. Smaller Fed policy errors accounted for the fall in inflation volatility. Smaller supply shocks accounted for the fall in … Acceleration and the Great Moderation. The implication is that changing variances of shocks caused the reduction of volatility … output volatility and smaller demand shocks for lower interest rate volatility. The same model with differing Taylor rules of …

aggregate shocks both for the variability of aggregate output and inflation. Considering the effects on country specific output …How does a monetary union work when labour markets are heterogeneous? Since shocks are transmitted via both trade links … model for a currency union in which labour markets are heterogenous and where the monetary policy targets expected inflation …

aggregate shocks. The implications of asymmetries for both the overall performance of the monetary union and the country … fall on small countries. In the case of country-specific shocks, a country unambiguously benefits in terms of macroeconomic … stability by becoming more flexible, while this is not necessarily the case for aggregate shocks. There may thus be a tension …

pronounced increase of aggregate US producer price inflation. …

competitiveness. A formal theory of inflation in the euro-zone based on an open-economy version of the New Keynesian model is used to … shown that, in effect, this is an inflation tax, requiring high inflation countries to make transfers to low inflation …

inflation and a permanent reduction in the level of unemployment. In short, we derive a microfounded long-run downward …