Carstensen, Kai; Hansen, Gerd - In: Jahrbücher für Nationalökonomie und Statistik 224 (2004) 3, pp. 271-291
Summary This paper analyses the inflation rate in Germany by means of a common trends model. Starting from an IS …-LM model of the open economy, we conduct a cointegration analysis from which we obtain plausible long-run relationships. In the … next step, we identify structural shocks with permanent and transitory effects and study their impacts on the inflation …