With inflation increasing all over the world, central banks have to consider with some care how quickly to re …: the cost of reducing inflation is in most cases higher in the US than in the EA. For example, reducing (headline …) inflation by 1% point requires a decline of output of 1.4% in the EU, but 2.3% for the US. Considering core inflation, the …

decisions on the EU-wide average of inflation and growth or should it instead focus on (appropriately weighted) national rates … of inflation and growth? We find that a central bank that minimises the national welfare losses reacts less to common … the variability of common shocks is large relative to the inflation bias. For a single country, welfare is lower in this …

"This paper deals with potential instabilities in the Eurozone stemming from an insufficient interplay between monetary … prevailed until some months ago, can also manifest themselves in asset price inflation, notably in the housing market. When … and weakness rather than consumer price inflation. As a second step, we point out that risks for EMU are not only …