Inflation differentials within European Monetary Union (EMU) are increasingly seen as exerting adverse effects on the … euro-area economies, in particular to those with relatively high inflation rates. Using three simple measures of …

We investigate output sensitivity of inflation in the euro area through a disaggregated analysis using price indices at … of the ICSP is significantly higher than that of headline inflation. The difference in output sensitivity is most … striking between the ICSP and core inflation because of the rather strong cyclical sensitivity of processed and unprocessed …

Our paper studies the relationship between money growth and consumer price inflation in the euro area using wavelet … analysis. Wavelet analysis allows to account for variations in the money growth-inflation relationship both across the … frequency spectrum and across time. We find evidence of strong comovements between money growth and inflation at low frequencies …

This paper studies the importance of money for inflation in the euro area. An inflation equation is derived from a … small model that combines the supply and demand for money with a Phillips curve and the assumption that inflation … expectations develop adaptively. The model's solution attributes an impact on inflation not to actual money growth but to its core …

In recent macroeconomic theory, relative price variability (RPV) generates the central distortions of inflation. This … paper provides first evidence on the empirical relation between inflation and RPV in the euro area focusing on threshold … effects of inflation. We find that expected inflation significantly increases RPV if inflation is either very low (below -1 …

This paper reviews theory and evidence of the welfare effects of inflation from a costbenefit perspective. Basic models … and selected empirical results are discussed. Historically, in assessing the welfare effects of inflation, the distortion … of money demand played a prominent role. More recently, interactions of inflation and taxation came into focus. Growth …

experts? inflation expectations, we find that the model adequately captures the dynamics of household inflation expectations …