of the two. We compare the accounting definition of deficit with the economic definition which takes inflation into …

welfare, since it often reduces the union’s utility. In particular, we show that an inflation-neutral union will never find it …

the early 1980s, during a period of high inflation. It traces the modeling and policy implications of this framework. It …

the widely held interpretation of the ECB as an inflation targeter—and a rather soft one, too—it is argued that the key … and inflation persistence that owes to the ECB’s failure to internalize the euro area’s fiscal regime. This raises the … question as to whether inflation targeting would have led to better results, or could do so in future. …

central bank can prevent or fix liquidity traps by appending to its inflation-targeting monetary policy with a prioritized …

'prudence'. It provides an alternative explanation for the positive relation between the level and variability of inflation …, both across countries and over time. In particular, the model predicts that high (low) inflation tends to be more variable …

correlation between inflation and output. Furthermore, this result is robust to parameter values and specification of the … inflation equation. …