Inflation differentials resulting from EMU enlargement have so far mostly been discussed within the Balassa …-Samuelson framework, i.e. resulting from inflation in nontradable goods. We analyse the inflationary consequences of convergenceof … tradable goods' prices. Using disaggregated price level data, simulations show that inflation in the new EU member states might …

We empirically investigate how well different learning rules manage to explain the formation of household inflation … in replicating inflation expectation data but also in forecasting actual inflation rates. …

This paper assesses the performance of core inflation measures based on the structural VAR approach. Since core or … monetary inflation is not directly observable, we develop a monetary general equilibrium model that fits real aggregated … European data and use this model to generate time series for headline as well as core inflation. For five different schemes …

This paper assesses the performance of core inflation measures based on the structural VAR approach. Since core or … monetary inflation is not directly observable, we develop a monetary general equilibrium model that fits real aggregated … European data and use this model to generate time series for headline as well as core inflation. For five different schemes …

We provide new insights on the formation of inflation expectations - in particular at a time of great financial and … answered a weekly questionnaire about their short-, medium- and long-term inflation expectations. Participants received common … information sets with data relevant to euro area inflation. Our analysis of survey responses reveals several interesting results …

of inflation risks. The empirical application shows that trading off monetary and macroprudential policy reduces the … overall costs related to inflation and financial instability. This can be achieved by changing the preferences of the central … bank, lengthening the monetary policy horizon and by a more flexible inflation target. Estimation results of a probit model …

This paper examines robust estimators of core inflation for Belgian historical CPI data, and for euro area Harmonised … outperform the traditional core inflation measures found in the literature. However, as traditional measures, they lag rather … than lead observed inflation. This was particularly so in the 70s and the 80s when the oil price shocks had substantial …

, Germany and Italy for the period 1991.3-2004.4. Instead of imposing rational expectations, I use direct measures of inflation … lagged inflation, I find that only in France lagged inflation does not have explanatory power beyond predicting expected … inflation. This suggests that only in France the standard forward-looking NKPC effectively captures quarterly inflation dynamics. …

The relationship between monetary indicators and inflation is ussually assumed to be linear, implying that looser … monetary conditions always signal an increase in in.ation. Recently, money growth in the euro area surged while inflation … regression model to verify the claim that the impact of monetary indicators on future inflation varies conditional on stock price …