The determinants of inflation differentials in the euro area

  • Inflation differentials in the euro area have been persistent since the adoption of the single currency. This paper analyzes the impact of product and labor market regulation on inflation in a sample of 11 countries. The results show that, after the adoption of the euro, product market deregulation has a relevant and significant effect on the level of inflation, while higher labor market regulation increases the responsiveness of inflation to the output gap.

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Author:Laura Moretti
Parent Title (German):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; 451
Series (Serial Number):CFS working paper series (451)
Publisher:Center for Financial Studies
Place of publication:Frankfurt, M.
Document Type:Working Paper
Date of Publication (online):2014/02/20
Date of first Publication:2014/02/20
Publishing Institution:Universit├Ątsbibliothek Johann Christian Senckenberg
Release Date:2014/02/28
Tag:EMU; Inflation Rate; Labor Market Deregulation; Product Market Deregulation
Institutes:Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoDeutsches Urheberrecht