and real wage rigidities. In our analysis, we focus on the differentials in inflation and unemployment between countries … inflation and unemployment differentials. Second, we find that asymmetries in labor market structures tend to increase the … volatility of both inflation and unemployment differentials. Finally, we show that it is important to take into account the …

inflation observed in the European catching-up countries, which suggests that other factors may be at play. In these and related … non-traded sectors) on the dual inflation differential is more than twice as large as that in the "flexible" countries. We … conclude that, in a catching-up country, premature euro adoption may foster excess inflation, beyond that which is to be …

representative household microdata from 11 Eurozone countries to simulate these policy reforms and to study their effects on the … that not all forms of fiscal integration will improve macroeconomic stability in the Eurozone …

Competitiveness differentials are blamed for the instability of the Eurozone. Most of the analyses focus on labour …

sensitivity of import prices has not fallen since 1999. We also point out a significant role played by the inflation in the … Eurozone, as the responsiveness of import prices to exchange rate fluctuations tends to decline in a low and more stable … inflation environment. Overall, our findings support the view that the extent of pass-through is comprised of both macro- and …