Empirica – Journal of European Economics

Sponsored by the Austrian Economic Association and the Austrian Institute of Economic Research

Empirica publishes empirical and theoretical work on all economic aspects of European Integration. The topics may range from all challenges concerning the deepening of the European Union (Single Market, Lisbon Agenda, EMU) to enlargement and the external relations of the EU (globalisation).

Journal homepage

Suche nach ArtikelnErweiterte Suche

Detailansicht

Johanna Amberger, Ralf Fendel
Understanding inflation dynamics in the Euro Area: deviants and commonalities across member countries
Empirica, 2017, 44(2), S.261-293, http://www.springer.com/10663
Central to this paper is the analysis of inflation dynamics in the Euro Area as well as in eleven individual Euro Area member countries between 1990 and 2012. Based on the hybrid new Keynesian Phillips curve, the analyses include survey measures from Consensus Economics to compare inflation dynamics across Euro Area member countries. Particular focus is set on the choice of suitable measures of real marginal cost. In addition to the well-known output gap, the role of finance-neutral output gaps and unemployment gaps is examined. Throughout the analyses, price setting is found to be largely backward-looking, but with a decreasing trend over time. Countries' varying sensitivity to the different measures of real marginal cost is highlighted, which may indicate persistent heterogeneity in Euro Area inflation dynamics. With the onset of the financial crisis, finance-neutral output gaps outperform alternative measures of real marginal cost.
Forschungsbereich:Makroökonomie und öffentliche Finanzen
Sprache:Englisch

Managing Editor

Univ.-Prof. MMag. Dr. Harald Oberhofer

Funktion: Ökonom (Senior Economist), Editor-in-Chief Empirica
Forschungsgruppe: Industrie-, Innovations- und internationale Ökonomie