What is the appropriate stabilization goal of monetary policy in the Euro Area? We would like to answer this question considering ten Euro Area countries, heterogeneous in the degree of price stickiness, affected by asymmetric real disturbances both on the demand and the supply side. According to the academic literature, in this environment, the optimal target is an asymmetric price index in which higher weight is given to the region where the level of price stickiness is higher. This paper has the aim of verifying this result in a more realistic European setting in which we consider a multi-region model and we use the country micro data on price stickiness.

Bragoli, D., Optimal Inflation Weights for EU Countries, <<Quaderni del Dipartimento di Scienze Economiche e Sociali>>, 2011; (Agosto): N/A-N/A [http://hdl.handle.net/10807/32023]

Optimal Inflation Weights for EU Countries

Bragoli, Daniela
2011

Abstract

What is the appropriate stabilization goal of monetary policy in the Euro Area? We would like to answer this question considering ten Euro Area countries, heterogeneous in the degree of price stickiness, affected by asymmetric real disturbances both on the demand and the supply side. According to the academic literature, in this environment, the optimal target is an asymmetric price index in which higher weight is given to the region where the level of price stickiness is higher. This paper has the aim of verifying this result in a more realistic European setting in which we consider a multi-region model and we use the country micro data on price stickiness.
Inglese
Quaderni del Dipartimento di Scienze Economiche e Sociali
Bragoli, D., Optimal Inflation Weights for EU Countries, <<Quaderni del Dipartimento di Scienze Economiche e Sociali>>, 2011; (Agosto): N/A-N/A [http://hdl.handle.net/10807/32023]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/32023
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