The determination of long-run aggregate supply is a feature which short-run models of macroeconomic policy coordination tend to neglect but which has implications for the setting of interest rates. In this paper, the authors develop an open-economy model of output maximization, where investment...

The relationship between inflation and the relative variability of prices has been the subject of careful investigation in the United States using data for product groups at the city level. Yet in Europe, where the relationship could have profound effects on the viability of monetary...

The relationship between inflation and the relative variability of prices has been the subject ofcareful investigation in the US using data for product groups at the city level. Yet in Europe,where the relationship could have profound effects on the viability of monetary integration, noattempt...