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.
| Dokumententyp: | Paper |
|---|---|
| Fakultät: | Volkswirtschaft
Volkswirtschaft > Lehrstühle > Lehrstuhl für Nationalökonomie |
| Themengebiete: | 300 Sozialwissenschaften > 330 Wirtschaft |
| Sprache: | Englisch |
| Dokumenten ID: | 19752 |
| Datum der Veröffentlichung auf Open Access LMU: | 15. Apr. 2014, 08:53 |
| Letzte Änderungen: | 29. Apr. 2016, 09:17 |
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