Smets, Frank (contributor); Wouters, Rafael (contributor) - 2004
the euro area.
6
ECB
Working Paper Series No. 391
September 2004
1. Introduction
The creation of a single currency, the …, but they are more persistent in the euro area.
The rest of the paper is structured as follows. Section 2 describes the …
parameter in the utility function is estimated around 1.5 and 2 for both countries. The habit parameter
(0.59 for the euro area …