-Wouters model and its forecasts of real GDP growth and inflation are compared with those from two extensions. The first adds … extensions improve the density forecasts of real GDP and inflation and their joint forecasts up to an eight-quarter horizon. We … find that adding financial frictions leads to a deterioration in the forecasts, with the exception of longer-term inflation …

and borrowing, similarities of inflation, and the correlation coefficient of detrended GDP. The index serves as a …

The paper analyzes the convergence of inflation rates in the group of more developed members of the Eurozone (core … countries). What are the characteristics and is the inflation process in these countries sufficiently homogeneous? Are the … analysed inflation rates converging, so that there is an indication that these countries tend to form the optimal currency area …

place. However, as actual developments in the Eurozone reveal, the political process of approaching an OCA is piecemeal …

international price-competitiveness via imported inflation that reduces real wages. This instrument is not available in a currency … union. The job has to be done by reductions in nominal wages that are felt as more severe pain than inflation …