imposing rational expectations, direct measures, ie OECD forecasts, are used to proxy economic agents' inflation expectations … Classical and Hybrid Phillips curves. We interpret our results as indicating that the European inflation process is not purely … forwardlooking, so that inflation cannot instantaneously adjust to new information. Consequently, even allowing for possible non …

The Baltic States, Estonia, Latvia and Lithuania, are very successful in transformation. From 1991 to 2015 they … secondly, do we really find everywhere the pattern of the "Shining star" Estonia, followed by Latvia and at least Lithuania … institutions in Estonia and Latvia can illustrate the lead of both countries in contrast to Lithuania till the crisis in 2008 …

, subsequently, we didn't see the inflation they predicted. We show that these puzzles disappear in a Vector Autoregressive model … much of the inflation dynamics in the 2012-2014 euro area missing inflation episode. Consequently, economists and models … that excessively focused on the global nature of inflation were liable to miss the contribution of deflationary domestic …