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Smets and Wouters (2003) find that at short- and medium-term horizons stochastic variations in the goods market mark-up are the most important source of inflation variability in the euro area. This article shows that an empirically plausible alternative interpretation is that the estimated price...
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banking crisis. Other EU countries, above all France, were indirectly affected by this crisis, and some eastern European … countries are also endangered. Although the EU has tried to contain the euro crisis with extensive rescue operations that have … switch that will shift the forces of growth back from the periphery to the center, although the EU rescue measures counteract …
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