conditions and inflation rates in the euro area. The paper concludes that the monetary-fiscal framework of EMU does not pay … back to a decade of remarkable macroeconomic stability. Somewhat surprisingly, though, inflation differentials across … presents a stylized theoretical model of a monetary union which demonstrates how persistent inflation differentials can arise …

Using unit labor cost (ULC) data from Euro area countries as well as US States and German La͏̈nder we investigate … inflation convergence using different approaches, namely panel unit root tests, cointegration tests and error-correction models …

Inflation differentials in the Euro area are mainly due to a sustained divergence of wage developments across the Euro … inflation using unit labour cost (ULC) growth and applying PANIC (Bai and Ng, 2004) and cluster procedures (Hobijn and Franses …, 2000, Busetti et al., 2006) to Euro area countries as well as US States, US Census Regions and German Länder. Euro area …

whether inflation uncertainty has diminished following the introduction of the Euro in Europe. Consumers' responses to the …This paper uses the European Commission's Consumer Survey to assess whether inflation expectations have converged and … survey suggest that inflation expectations depend more on past national inflation rates than on the ECB's anchor for price …

convergence of inflation rates and the convergence of investment barriers. On the one hand, the common monetary policy might have … driven a stronger comovement in inflation rates, leading to increasingly similar hedging strategies among member countries … increasingly similar portfolio allocations among member countries. We find that the comovement of inflation rates has not …