Andrés, Javier; Ortega, Eva; Vallés, Javier - In: Journal of Economic Dynamics and Control 32 (2008) 3, pp. 848-874
In a monetary union, inflation rate differentials may be substantial over the business cycle. This paper parameterizes a monetary union with cross-country structural differences in (i) the elasticity of demand in the goods markets, (ii) the degree of price inertia and (iii) the preference for...