compares price inflation before the crisis with the necessary and actual price cuts that have taken place since the outbreak of … the crisis, predicting a decade of stagnation for the south and inflation for the north. Keynesian demand policy is … steered to uses they are keen to avoid. -- competitiveness ; inflation ; realignment ; Keynesian policy …

inflation bias as monetary policy tries to exploit nominal wage contracts to address labour-market distortions Although an … inflation target eliminates this inflation bias, it creates a conflict between monetary policy and discretionary fiscal policy …

taxation but suffers only part of the costs of union-wide inflation and higher interest rates, creating a tendency towards …

decisions on the EU-wide average of inflation and growth or should it instead focus on (appropriately weighted) national welfare … losses based on national rates of inflation and growth? We find that a central bank that minimises the sum of national … common shocks is large relative to the inflation bias and if idiosyncratic demand shocks in the non-tradables sector are not …

parameter combinations our results confirm the findings of Beetsma et al. (2001) that for symmetric inflation and output gap … central bank and the coalition of national governments is most intense under a symmetric inflation shocks when there is strong … conflict concerning the orientation of stabilisation policies. This conflict is less pronounced under an asymmetric inflation …

The standard loss function counts both positive and negative deviations from the output and inflation targets as losses …. But if the sample period is long enough, then output growth in excess of the target, and often also inflation rates that …

stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have … to be cut, workers stronger bargaining position requires higher unemployment in equilibrium. However, inflation is more … stable when money wage rigidity binds, providing an incentive for monetary policy makers to choose a low target for inflation …