The paper analyzes the convergence of inflation rates in the group of more developed members of the Eurozone (core … countries). What are the characteristics and is the inflation process in these countries sufficiently homogeneous? Are the … analysed inflation rates converging, so that there is an indication that these countries tend to form the optimal currency area …

responses of output, inflation, labor share and the nominal interest rate to a supply shock as identified through a structural …

. Macroeconomic outcomes are measured by the mean levels and the volatility of output (gaps), unemployment and inflation. We present … point inflation target appears to outperform a target range. Third, the (relative) performance of low-for-long (L4L … space is small, but if the space is larger these rules, while stabilizing inflation, may lead to more volatility in the real …

recalibrations were central in supporting inflation. For example, we find inflation would have fallen into negative territory without …

area (EA) and the US. The estimations show that until mid-2014 the ECB’s response to inflation was more forceful when … inflation was above 2% than below 2%. Since then, the ECB’s policy can be characterised as symmetric, and we quantify the … bound and a low neutral real rate, and find that it prescribes a stronger response to inflation and the output gap when …

inflation targeting result in a binding lower bound one-fourth of the time as well as inflation and output exhibiting large … purchases. Makeup strategies, especially average inflation targeting with a long averaging window, perform better than inflation …

equilibrium real rate using an estimated DSGE model for the euro area. We find that simple feedback rules that implement inflation … targeting result in a binding lower bound one-fourth of the time as well as inflation and output exhibiting large downward … purchases. Makeup strategies, especially average inflation targeting with a long averaging window, perform better than inflation …

policy in reducing inflation. Specifically, a fiscal consolidation of 1 percent of GDP for two years and 0.5 percent in the …, while lowering inflation. It would also put the public debt-to-GDP ratio on a downward path, with the output costs reversing … risks. In the current context of elevated inflation in all euro area economies, the findings suggest two key takeaways …