In this paper we test whether globalisation has affected the relationship between the output gap and inflation in the euro area. Then we investigate how the traditional Phillips Curve relating the inflation and the domestic output gap can be enhanced incorporating globalisation effects. We...

This paper focus on an analysis of the GVAR model across euro-area countries when detrending. The GVAR model accommodates cross-country as well as cross-variable dependencies among the euro-area countries. We focus on the role of cross-sectional dependence in the production of trend and cycle...