The paper presents an incomplete competition model (ICM), where inflation is determined jointly with unit labour cost … growth. The ICM is estimated on data for the Euro area and evaluated against existing models, i.e. the implicit inflation …. There is, however, some support in favour of the (reduced form) AWM inflation equation. It is the only model that …

the determination of inflation and output in the euro area and the existence of a non-vertical long-run Phillips curve …

This paper analyses the degree of inflation persistence in the EU15, the euro area and each of its member states using … moderate degree of median and mean inflation persistence. For most price indices we are able to reject the unit root hypothesis …, as well as the notion of disaggregate inflation exhibiting a high degree of persistence. Durable goods and services tend …

In the paper we propose a new methodological approach to core in- flation estimation, based on a frequency domain … principal components estimator, suited to estimate systems of fractionally cointegrated processes. The proposed core inflation … measure is the scaled common persistent factor in inflation and excess nominal money growth and bears the interpretation of …

Equilibrium correction models of the price level are often used to model inflation. Such models assume that the long …

1990s. Allowing for a break in intercept, the inflation measures generally exhibit relatively low inflation persistence …. Evidently, high inflation persistence is not an inherent characteristic of industrial economies. …We apply both classical and Bayesian econometric methods to characterize the dynamic behavior of inflation for twelve …

This paper addresses the estimation of Phillips curve equations for the euro area while employing less stringent … assumptions on the functional correspondence between price inflation, inflation expectations, and marginal costs. Expectations are … not assumed to be an unbiased predictor of actual inflation and instead derived from the European Commission's Consumer …

This paper addresses some issues concerning the definition and measurement of inflation persistence in the context of …-parametric measure of persistence is suggested which explores the relation between persistence and mean reversion. Third, inflation … persistence crucially depend on the function used to proxy the mean of inflation. In particular, the widespread belief that …