derogation from adopting the euro as their currency (that is, each country joining the EU commits to replace its national … currency with the euro, but can choose when to request permission to do so). For most of these countries, adopting the euro … convergence with the rest of the euro area. …

United States and the euro area, and we perform model comparisons to study the importance of departing from the law of one …

This paper focuses on euro area policies. The monetary policy stance remains appropriate for now. Fiscal policies are …

are affected by the undershooting of the euro area inflation target. To shed light on this issue, we estimate an open … energy prices have been the main disinflationary driver. But low core inflation in the euro area has also had a clear and … have been more affected. The scope for monetary response to low inflation in non-euro area EU countries depends on concerns …

to adopt the euro in 2015. Over the medium term, inflation in Lithuania will likely run somewhat higher than in the euro …This Selected Issues paper focuses on sustainability of public finances and low inflation in Lithuania. Lithuania aims … area on average, but this will be driven by continuing income convergence. The long-term inflation track record is …

weaker linkages bewteen inflation and real credit growth within Europe. While the euro area is the dominant source of … euro area countries, other advanced European countries (including the Nordics, the UK, etc.), and the Central, Eastern and …

two-country DSGE model for the U.K. economy and the euro area, and use the model to compute the welfare trade-offs from … joining the euro. We evaluate two alternative scenarios. In the first one, we consider a reduction of trade costs that occurs …

This paper discusses comovement between inflation and output in the euro area. The strength of the comovement may not … half of its variance. The strong relationship of output and inflation hints at the importance of demand shocks for the euro … frequency, the output and core inflation comovement is high and stable, and that inflation lags the cycle in output with roughly …

This 2014 Article IV Consultation highlights that the euro area recovery is taking hold. Real output has expanded for …