The aim of this paper is to carry out a sectorial causality analysis between prices and unit labour costs for the Spanish regions. In order to achieve our goal, we have developed our own database for the unit labour costs (ULC). It includes data for Spain and five of its regions: Andalusia,...

This paper studies the relation between inflation and relative price variability (RPV) in Spain during the 1987-2009 period. We find that this relation presents a U-shape profile, and that the optimal annual inflation rate (defined as the one that minimizes RPV) is around 4%, higher than the 2%...

In this paper we examine the case of partial central bank transparency and the interaction between public debt management and the design of monetary institutions. In particular, we establish a relationship between central bank transparency and nominal debt and find that it depends on whether the...

This paper examines the effect of wage indexation on the optimal degree of central bank conservativeness in a dynamic economy. In particular, we find that when unemployment persists, wage indexation is inflationary as it lowers the will of the central banker to fight inflation. Furthermore, we...

The Rogoff proposition (Quarterly Journal of Economics, 100 (1985), pp. 1169-90) that it is socially optimal to delegate monetary policy to a central banker that is more inflation-averse than society has been widely accepted and implemented in practice. However, there is a literature that argues...