), the problem of instability is simply transferred to inflation rate differentials, what we call the (impossibility of the …) "uncovered inflation rate parity condition" in a monetary union. The analysis of the actual divergences and imbalances in the EMU …, then, suggests that failure to respect the "uncovered inflation rate parity condition" in a monetary union may lead to …

inflation targeting policy of setting union-wide inflation to zero is never optimal. Second, the interactions lead to a trade … inefficiencies by mitigating the drop in output and inflation and the rise in relative consumption and prices. Such a policy response …

monetary policy, especially noticeable during significant events like the global financial and euro crisis and during the … recent inflation spike. The findings suggest a significant mismatch between the ECB's actual rates and those recommended by …

, the response of Euro bond rates to the FED announcements is stronger than their response to ECB announcements …

losses for the ECB and try to assess inflation dangers stemming from the 3Y LTROs. In the same section, we also look at the … interbank and the capital market in the euro area. We then investigate potential side-effects of the LTROs such as the effects … banks in the euro area on ECB funding. …