This paper analyses the determinants of inflation differentials and price levels across the euro area countries. Dynamic panel estimations for the period 1999-2006 show that inflation differentials are primarily determined by cyclical positions and inflation persistence. The persistence in...

We show that unexpected price level movements generate sizable wealth redistribution in the Euro Area (EA), using sectoral accounts and newly available data from the Household Finance and Consumption Survey. The EA as a whole is a net loser of unexpected price level decreases, with Italy,...

The standard cost-of-living index hinges on the assumption that there is free trade. Applying it to situations where trade barriers are present yields biased results with respect to a true cost-of-living index. Import price indices are particularly vulnerable to this bias since many of the goods...

The Norwegian productivity puzzle is rooted in three seemingly contradictory "facts": First, Norway is one of the most productive OECD countries. Second, Norway has experienced high growth in productivity. Third, Norway has a relatively low level of R&D intensity. In this article, I show that...

Real Exchange rate is an important player in the growth of the economy as it may lead to higher export by stabilizing currency value at any specific level. This study aims to analyze the determinants of real exchange rate in Pakistan. Time series data is collected from 1972 - 73 to 2012 - 13....

The major objective of this thesis is to investigate whether there exists a stable long run and short run equilibrium relationship between real money balances (M1 or M2) and their determinants in Thailand. A cointegration analysis and the Vector Error Correction Model (VECM) are conducted on...

Experimental auction and discrete choice experiment are two popular value elicitation methods.Theoretically they should yield the same results but empirical results have been mixed (e.g.,Lusk and Schroeder 2004, 2006; Corrigan et al. 2010.) This study uses both methods todetermine consumers’...

Recent financial instability has called into question the sufficiency of low inflation as a goal for monetary policy. This paper discusses inter-war literature bearing on this question. It begins with theories of the cycle based on the quantity theory, and their policy prescription of price...

This paper analyzes empirically the impact of fiscal policy on the price level for the cases of Germany and Spain. We investigate whether the fiscal theory of the price level (FTPL) is able to deliver a reasonable explanation for the different performances of the price level in these two...