This paper analyses the problem faced by CEECs wishing to join the Euro who must hit both an inflation and exchange … rate criterion during a period of nominal convergence. This process requires either an inflation differential, an … rate and inflation criteria. The authorities can use their monetary policy to hit one criterion, but must essentially just …

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 …

prices thereafter. Notwithstanding clear evidence of forward-lookingness, inflation persistence is substantial in both …

The harmonized index of consumer prices allows for inflation comparisons between European countries. This report shows …

We find that regional inflation dispersion has not markedly increased since the start of EMU, although it is somewhat … higher than in other monetary unions (US and Germany), and that the distribution of member states' rates of inflation around … the euro area HICP inflation rate is characterised by a few outliers. In addition, an analysis based on economic weights …

Following the Maastricht criteria, a country seeking to join the European Monetary Union cannot have an inflation rate … in excess of 1.5 percent plus the average inflation rates in the three 'best performing' EU countries. This inflation … simulations show that the expansion of the EU from 15 to 27 members reduces the expected inflation reference value by 0 …

through to deficits, debt, interest rates and inflation and seeks to provide numerical estimates of these factors. Deficits … only in the cases of Latvia and Poland has the crisis changed the outlook for meeting the criterion. Inflation has fallen … inflation rates for several years. Lastly, the interest rate criterion is more challenging because of the rise in spreads since …