We show that unexpected price level movements generate sizable wealth redistribution in the Euro Area (EA), using … to the presence of relatively few young borrowing HHs. We document that HHs inflation exposure varies systematically … across countries, with HHs in high inflation EA countries holding systematically lower nominal exposures …

We show that unexpected price level movements generate sizable wealth redistribution in the Euro Area (EA), using … to the presence of relatively few young borrowing HHs. We document that HHs inflation exposure varies systematically … across countries, with HHs in high inflation EA countries holding systematically lower nominal exposures. …

2010-2019, we document new findings on consumer price rigidity in the euro area: (i) each month on average 12.3% of prices … changes does not change much with inflation and does not react much to aggregate shocks; (vi) changes in inflation are mostly … consistent with the predictions of a menu cost model in a low inflation environment where idiosyncratic shocks are a more …

Inflation in the euro area has been falling since mid-2013, turned negative at the end of 2014 and remained below … by means of sign restrictions, to inflation and economic activity. Shocks to oil supply do not tell the full story about … contractionary. A country analysis confirms that the negative effects of oil supply and monetary policy shocks on inflation was …

We develop a theoretical model that features a business cycle-dependent relation between output, price inflation and … inflation expectations, augmenting the model by Svensson (1997) with a nonlinear Phillips curve that reflects the rationale … pronounced convex relationship between inflation and the output gap, meaning that the co-efficient in the Phillips curve on the …

Did the decline in inflation rates from 2012 to 2015 and the low levels of market-based inflation expectations lead to de …-anchored inflation dynamics in the euro area? This paper is the first time-varying event study to investigate the reaction of inflation …-linked swap (ILS) rates – a market-based measure of inflation expectations – to macroeconomic surprises in the euro area. Compared …