This paper decomposes the time-varying effect of exogenous exchange rate shocks on euro area countries inflation into … quarters of the past six years, especially in turning point periods. Our main results indicate that headline inflation in euro … inflation this increasing sensitivity is solely reliant on a sustained surge in the degree of comovement, for energy inflation …

This paper decomposes the time-varying effect of exogenous exchange rate shocks on euro area countries inflation into … over the past six years – especially in turning points periods. Our main results indicate that headline inflation in euro … sensitivity relies solely on a sustained surge in the degree of comovement for headline inflation, it is also based on a higher …

dollar shock, generalised impulse response function shocks and a global shock to risk aversion. Our results show that the way … depends crucially on the nature of the shock. This result is noteworthy given the apparent divergence in competitiveness …