This study analyses the impact of economic catching-up on annual inflation rates in the European Union with a special … Balassa-Samuelson effect is not an important driver of inflation rates. By contrast, we find that the initial price level and … regulated prices strongly affect inflation outcomes in a nonlinear manner and that the extension of Engel's Law may hold during …

Density forecasts of euro area inflation are a fundamental input for a medium-term oriented central bank, such as the … euro area (headline and core) inflation and a large set of determinants, is competitive with state-of-the-art linear … ECB point inflation forecasts, displaying similar deviations from "linearity". Given that the ECB modelling toolbox is …

We show that the effects of inflation on growth change substantially as the inflation rate rises. Moreover the … inflation first begins to seriously negatively affect growth is around 8% for industrial economies but 3% or less for developing … countries. Marginal growth costs for developing countries then decline significantly above 50% inflation. Failure to account for …

This study analyses the impact of economic catching-up on annual inflation rates in the European Union with a special … Balassa-Samuelson effect is not an important driver of inflation rates. By contrast, we find that the initial price level and … regulated prices strongly affect inflation outcomes in a nonlinear manner and that the extension of Engel’s Law may hold during …