This paper explains why sovereign issuers of reserve currencies do not use unexpected inflation to repudiate their … excessive money creation. It is shown that even without policy precommitment or aversion to inflation, the availability of … alternative currencies can support an equilibrium with a finite, time consistent inflation rate …

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 …

Inflation expectation is acknowledged to be an important indicator for policy makers and financial investors. To … capture a more accurate real-time estimate of inflation expectation on the basis of financial markets, we propose an arbitrage …-free model across different countries in a multi-maturity term structure, where we first estimate inflation expectation by …