inflation. Special attention is paid to the issue of whether a mean should be extracted in carrying out unit root and … just in rates of inflation. The tests are applied to the monthly series of the Consumer Price Index in the Italian regional … capitals over the period 1970-2003. It is found that all pairwise contrasts of inflation rates have converged or are in the …

correction models for Germany, France, Italy, the Netherlands and Spain. Using the weights of the Harmonized Index of Consumer …

In this paper we present supporting evidence of the existence of heterogeneity in inflation dynamics across euro area … significant inertial (backward looking) behavior in inflation in four of them, while inflation in Germany has a dominant forward … looking component. We then present an optimizing agent model for the area emphasizing the heterogeneity in inflation …