weaker linkages bewteen inflation and real credit growth within Europe. While the euro area is the dominant source of …

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

are affected by the undershooting of the euro area inflation target. To shed light on this issue, we estimate an open …-economy, New Keynsian Phillips curve, in which we control for imported inflation. Regression results suggest that falling food and … energy prices have been the main disinflationary driver. But low core inflation in the euro area has also had a clear and …

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

Many central banks target an inflation rate near two percent. This essay argues that policymakers would do better to … target four percent inflation. A four percent target would ease the constraints on monetary policy arising from the zero … cost, because four percent inflation does not harm an economy significantly. …