The Harmonized Index of Consumer Prices (HICP) is at the core of the monetary policy strategy of the European Central Bank (ECB). It is the basis for the quantitative definition of price stability that is the ECB’s principal objective. For operational purposes, in October 1998 the Governing...

This paper studies the (potential) weak identification of these relationships in the context of a fully specified structural model using Bayesian estimation techniques. We trace the problems to sample size, rather than misspecification bias. We conclude that standard macroeconomic time series...

Central bank independence has never been more important, ensuring that central bankers are able to deliver on their mandates.

It has long been known that free trade contributes to higher standards of living over time.

The cross-section distribution of U.S. import prices exhibits some of the fat-tailed characteristics that are well documented for the cross-section distribution of U.S. consumer prices. This suggests that limited-influence estimators of core import price inflation might outperform headline or...

We base theoretically the fact that the "saving retention coefficient" with panel data measures the integration within a considered group of countries but also the integration between this group and the rest of the world, by using different levels of transaction costs according to whether the...