We propose an alternative explanation for the nature, sources and consequences of inflation rate differentials in a … inflation differentials and offer an interpretation of the nature of this interaction. We demonstrate that divergent inflation … the supply-side of the economy. Second, we show how such divergence of individual country's inflation rates may arise when …

In this paper we propose an alternative explanation for the nature, sources and consequences of inflation rate … catching-up and inflation differentials and offer an interpretation of the nature of this interaction. Our discussion is in … inflation rates between Member States do not necessarily have to be an equilibrium phenomenon, even if the original shock comes …

This paper analyzes the long-run determinants of inflation differentials in a monetary union. First, we aim at …some stylized facts relating the regional dispersion in headline inflation rates in the euro area as well as in the …-traded sector as the primary cause of price and inflation differentials, with shocks to productivity in the traded sector being …

, notwithstanding that inflation in some countries tends to converge towards the euro area level. Overall, inflation persistence has …