Amisano, Gianni; Colavecchio, Roberta; Fagan, Gabriel - 2014 - Preliminary. This Version: February 2014
We employ a money-based early warning model in order to analyse the risk of a low inflation regime in the Euro Area, Japan and the US. The model specification allows for three different inflation regimes: "Low", "Medium" and "High" inflation, while state transition probabilities vary over time...