Inflation persistence has been put forward as one of the potential reasons of divergence among euro area members. It … NMS went through, are applied. We emphasize that a time-varying mean models suggest similar or lower inflation persistence … due to frequent breaks in inflation time series in the NMS. Structural persistence measures show that backward …

inflation observed in the European catching-up countries, which suggests that other factors may be at play. In these and related … non-traded sectors) on the dual inflation differential is more than twice as large as that in the "flexible" countries. We … conclude that, in a catching-up country, premature euro adoption may foster excess inflation, beyond that which is to be …