of inflation and interest rates, real convergence of per capita income levels has not occurred among the original euro …

times. An inflation shock only slightly reduces the debt ratio for a few quarters. A positive growth shock unambiguously …

. The results confirm the prominent role of income, along with interest rate, inflation, fiscal balance, and debt in shaping …-than-proportionately with shocks to income, interest rate, inflation, and government balance. Our policy simulations across the distribution of …

Despite closing output gaps and tightening labor markets, inflation has remained low inthe euro area. Based on an … augmented Phillips Curve framework, we find that thisphenomenon-sometimes attributed to low global inflation-has been primarily … causedby a remarkable persistence of inflation, keeping it low despite the reduction in slack. Thisfeature is shown to be …

Do euro area inflation expectations remain well-anchored? This paper finds that the protractedperiod of low (and below …-target) inflation in the euro area since 2013 has weakened theiranchoring. Testing their sensitivity to inflation and macroeconomic news … robustness to our conclusions. Results point to a significantimpact of inflation news over recent years that had not been …

This paper discusses comovement between inflation and output in the euro area. The strength of the comovement may not … frequency, the output and core inflation comovement is high and stable, and that inflation lags the cycle in output with roughly … half of its variance. The strong relationship of output and inflation hints at the importance of demand shocks for the euro …