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This paper estimates a medium-scale open economy DSGE model for Germany and the rest of the Euro Area (REA). The parameter estimates indicate that there is a modest degree of structural heterogeneity between Germany and the rest of the Euro Area. In particular, (i) the private sector in Germany...
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The paper presents a comparative analysis of monetary transmission mechanisms and changes in them after the "second ERM" in March 1983. The empirical model investigates the determination of money, income, prices, and interest rates in Germany, Denmark, and Italy based on the cointegrated VAR...
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In this paper we present supporting evidence of the existence of heterogeneity in inflation dynamics across euro area … countries. Based on the estimation of New Phillips Curves for five major countries of the euro area, we find that there is … significant inertial (backward looking) behavior in inflation in four of them, while inflation in Germany has a dominant forward …
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