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    Optimal inflation weights in the Euro Area

    Bragoli, D. and Rigon, M. and Zanetti, F. (2015) Optimal inflation weights in the Euro Area. Working Paper. Birkbeck, University of London, London, UK.

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    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.

    Metadata

    Item Type: Monograph (Working Paper)
    Additional Information: BCAM 1503; ISSN 1745-8587
    Keyword(s) / Subject(s): Optimal monetary policy, Euro Area regions, asymmetric shocks, asymmetric price stickiness.
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Economics, Mathematics and Statistics
    Research Centre: Applied Macroeconomics, Birkbeck Centre for
    Depositing User: Administrator
    Date Deposited: 21 Mar 2019 16:24
    Last Modified: 27 Jul 2019 08:55
    URI: http://eprints.bbk.ac.uk/id/eprint/26636

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