inflation observed in the European catching-up countries, which suggests that other factors may be at play. In these and related … non-traded sectors) on the dual inflation differential is more than twice as large as that in the "flexible" countries. We … conclude that, in a catching-up country, premature euro adoption may foster excess inflation, beyond that which is to be …

and inflation rates. Building on the lessons from recent advances in time-series econometrics, we suggest instead that one …

money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal …

" - although they generate price inertia, they cannot account for the stylised fact of inflation persistence. It is thus commonly … asserted that, in the context of the new Phillips curve (NPC), inflation is a jump variable. We argue that this "persistency … equilibrium setting (in which real variables not only affect inflation, but are also influenced by it), standard wage …

inflation/unemployment responses to money growth shocks. SVAR (structural vector autoregression) and GMM (generalised method of … chain reactions, and provides new evidence on the long-run inflation-unemployment tradeoff in the US. It is argued that … and real sides of the economy are symbiotic. In the light of the significant and robust long-run inflation …