We build a stylised 12-country model of the euro area and use it to analyse why differences in national inflation and … growth rates arise within the European monetary union. We find that inflation persistence is a key potential explanatory … mechanism across countries, count less. We also look at how a monetary policy geared to area-wide average inflation affects …

announcing a quantified inflation objective, other forms of communication, or by publishing central banks’ inflation and output … (economic) transparency, and given our findings that disagreement among inflation expectations in the general public is not …

Inflation has been well contained over the last decades in most industrialized countries. This implies, however, that … memories of high inflation are likely to fade, because over time larger parts of the population have never experienced high … inflation, whereas those who have might forget. This paper tests whether memories of high inflation affect agents’ preferences …

-lasting effect on stock market returns, and also tend to reduce market volatility. Speeches and interviews, in contrast, have little … effect on market returns and do not generate a volatility reduction during tranquil times, but have had a substantial effect …