Angeloni, Ignazio; Ehrmann, Michael - In: Topics in Macroeconomics 7 (2007) 1, pp. 1509-1509
We build a stylised 12-country model of the euro area and use it to analyse how differences in national inflation and … third. Among the propagation mechanisms a key role is played by inflation persistence; for plausible parameter values even … control of average area-wide inflation around a target tends to reduce the differentials as well. …