| Reutter, Michael; Sinn, Hans-Werner (2000): The Minimum Inflation Rate for Euroland. CESifo Working Paper, 377 |
Full text not available from 'Open Access LMU'.
External fulltext: http://hdl.handle.net/10419/75518
Abstract
As a result of the Balassa effect relative prices change rapidly between and within the euro countries. Thus it is impossible to find a common monetary policy that will result in price stability in all countries. Based on empirical estimates of the Balassa model, the paper calculates a minimum aggregate inflation rate which is compatible with the requirement that no country face a deflation. This minimum aggeragate inflation rate is 0.94\% in the euro-11 countries and 1.13\% in an extended Europe which incorporates the east European countries.
| Item Type: | Paper (Discussion Paper) |
|---|---|
| Faculties: | Economics Economics > Chairs > Chair for Public Economics |
| Subjects: | 300 Social sciences > 330 Economics |
| Language: | English |
| ID Code: | 19752 |
| Deposited On: | 15. Apr 2014 08:53 |
| Last Modified: | 29. Apr 2016 09:17 |
Repository Staff Only: item control page
