This paper argues that important independent causes of European weakness, in addition to U.S. strength, were involved in producing the stark growth differential between the euro area and U.S. economies widely held to have caused euro weakness. The paper scrutinizes the role of European monetary...

Deflation is currently considered as one of the most important threats for macroeconomic dynamics and, thus, it is argued that it should be avoided by all available means. We challenge this view because empirically it cannot be verified that deflation periods necessarily go hand in hand with...

Low price inflation is an official monetary policy target in many countries because of the positive effects it may generate on economic growth. However, if nominal wage rigidities exist, low price inflation may have a negative effect on economic growth. In this paper we test whether there exists...

Low price inflation is an official monetary policy target in many countries because of the positive effects it may generate on economic growth. However, if nominal wage rigidities exist, low price inflation may have a negative effect on economic growth. In this paper we test whether there exists...