We reappraise the relationship between productivity and equilibrium real exchangerates using a panel estimation … ofnon-traded, as well as traded, sector productivity shocks in exchange ratedetermination. We find evidence of significant … correlation between real exchangerates and productivity differentials in both sectors. But our finding of a significant rolefor …

a special focus on persistence of real wages,wage and price inflation. The analysis is conducted within a structural …, as well as the cointegrating properties of theestimated system. Overall, in the long run, wage and price inflation emerge … as morepersistent in the EA than in the US in the face of import price, unemployment, orpermanent productivity shocks …

This paper examines the impact of downward wage rigidity (nominal and real) onoptimal steady-state inflation. For this … andFinland). The calibrated heterogeneous agent models are then solved for differentsteady state rates of inflation to derive …

, consumption, investment and unemployment)has a distinct dynamic from disagreement about nominal variables(inflation and interest … series. Countryby-country regressions for inflation and interest... …

which induce smooth inflation also dampen the adjustment of wages in response to shocks. In the search and matching … Phillips curve is that inflation is not only driven by an output gap but also by an employment gap – a feature usually …

All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to …

Is inflation persistence in the new EU Member States (NMS) comparable to that in the euro area countries? We argue that … show that due to frequent breaks in inflation time series in the NMS, parametric statistical measures assuming a constant …-varying mean leads to the reversal of this result and suggests similar or lower inflation persistence for the NMS compared to euro …

-term interest rates to the Bank of England’s inflation report andto macroeconomic announcements. Due to the quarterly frequency at …, the more timehas elapsed since the latest release of an inflation report, market volatility shouldincrease, the price …

food price shocks on a given set of countries.Secondly, we assess the importance of inflation linkages among countries, by …