strengthens the gains from make-up strategies relative to inflation targeting, especially if policy space is reduced. This result … permanent scars on long-run aggregate supply. Make-up strategies not only foster the alignment of inflation with target but also … support productivity-improving investment in R&D and technology adoption and hence the long-run trend path, provided that the …

prices with respect to the euro area productivity growth and increased trade openness. Productivity growth can have a … productivity growth a positive one on price level convergence with respect to the euro area …

This paper analyses the endogeneity of euro area total factor productivity and its role in business cycle amplification … by estimating a medium-scale DSGE model with endogenous productivity mechanism on euro area data. In this framework …, total factor productivity evolves endogenously as a consequence of costly investment in R&D and adoption of new technologies …