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Optimal inflation weights in the Euro Area

Abstract:
This study investigates the appropriate measure for stabilizing inflation in the euro area. We use a model that accounts for both the heterogeneity observed in the degree of price rigidities across regions and sectors, and asymmetry of real disturbances in relative prices. Our work shows that the optimal weights to assign to each region or sector result from complex interactions between the degree of price stickiness, economic size, and the distribution of shocks within regions.
Publication status:
Published
Peer review status:
Peer reviewed

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Publication website:
https://www.ijcb.org/journal/ijcb16q2a8.htm

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Institution:
University of Oxford
Oxford college:
Wadham College
Role:
Author


Publisher:
Association of the International Journal of Central Banking
Journal:
International Journal of Central Banking More from this journal
Volume:
12
Issue:
2
Pages:
357-383
Publication date:
2016-06-01
Acceptance date:
2015-06-22
ISSN:
1815-4654


Language:
English
Keywords:
Pubs id:
pubs:628006
UUID:
uuid:e5638623-77c7-43ae-97d0-ea9db6b9a7d0
Local pid:
pubs:628006
Source identifiers:
628006
Deposit date:
2017-05-13

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