specific "excess deflation" puzzle may be added during the post-crisis depression in the Euro Zone. The standard Phillips Curve … rationally related to the business cycle. The model is tested with the Euro Zone data 1999-2019 showing that inflation turns out …

Although euro area-wide inflation was from 1999 to 2005 almost right, i.e., "close to balance, but below 2%," and … although it combined with real growth as predicted by the long-run money demand equation in the euro area, the picture that … real growth is an issue that the euro area governance is illprepared to manage. It may be of interest, therefore, to …