We investigate co-movements and heterogeneity in inflation dynamics of different regions within and across euro area … countries using a novel disaggregate dataset to improve the understanding of inflation differentials in the European Monetary … Union. We employ a model where regional inflation dynamics are explained by common euro area and country specific factors as …

In this paper, we examine the determinants of inflation differentials in a panel of the new European Union member … level in the new EU members is associated with narrower inflation differential vis-à-vis the euro area, while fiscal deficit … and positive output gap seem to contribute to higher inflation differential. Nevertheless, the effect of price convergence …

This paper adopts the Impulse-Response methodology to understand inflation persistence. It has often been argued that …, we find that allowing for a distribution of contract lengths can yield a more plausible explanation of inflation …