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The purpose of this paper is to examine the inflation differentials and their determinants in the first twelve euro … countries that formed the eurozone. We focus on only these countries to capture the effects through the last 22 years from 1999 …, show that it is mostly structural and cyclical factors that drive inflation differentials among these euro countries and …
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In light of persistent in ation dispersion and rising debt levels in the EMU, this paper investigates the welfare implications of budget-neutral scal policies that counteract in ation di erentials. In a two-country DSGE model of a monetary union with traded and non-traded goods a national scal...
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