stabilizing shocks increases, when there is a gap in the inflation differential due to a relative shock, an idiosyncratic shock or …

policy varies between inflation targeting and restrained price level determination. I find that spillover multipliers are …

that productivity shocks alone generate significant variation in inflation across the two countries. Government spending … shocks, in contrast, do not account for a significant portion of inflation variation. Varying relative country size, we find … that smaller countries experience higher variability of their inflation differential in response to shocks to productivity …