Recent literature on optimum currency areas has emphasized the importance of analysing the nature of the shocks facing the economy when deciding among alternative exchange rate regimes. In this paper we use a structural VAR to model the joint behaviour of real output, nominal interest rates,...

Linear models reach their limitations in applications with nonlinearities in the data. In this paper new empirical evidence is provided on the relative Euro inflation forecasting performance of linear and non-linear models. The well established and widely used univariate ARIMA and multivariate...