Arbeitspapier
The Minimum Inflation Rate for Euroland
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.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 377
- Classification
-
Wirtschaft
- Subject
-
Inflation target
Balassa-Samuelson effect
ECB
- Event
-
Geistige Schöpfung
- (who)
-
Reutter, Michael
Sinn, Hans-Werner
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2000
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Reutter, Michael
- Sinn, Hans-Werner
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2000
Other Objects (12)
Austerity, growth and inflation: Remarks on the Eurozone's unresolved competitiveness problem
The Effective Rate of Interest on Target Balances
Casino capitalism : how the financial crisis came about and what needs to be done now = Kasino-Kapitalismus <engl.>
Zum Abschied
Staatsverschuldung und dynamische Ineffizienz: Warum der Münchhausen-Trick nicht funktioniert
The Competition between Competition Rules
EU Enlargement, Migration, and Lessons from German Unification
A Social Union for the EU? Contra: Europe Does Not Need a Social Union
Kurzvortag zur Eurokrise vor dem Verfassungsgericht
Risk Taking, Limited Liability and the Competition of Bank Regulators
Pension Reform and Demographic Crisis: Why a Funded System is Needed and why it is not Needed
The welfare state and the forces of globalization
Austerity, growth and inflation: Remarks on the Eurozone's unresolved competitiveness problem
The Effective Rate of Interest on Target Balances
Casino capitalism : how the financial crisis came about and what needs to be done now = Kasino-Kapitalismus <engl.>
Zum Abschied
Staatsverschuldung und dynamische Ineffizienz: Warum der Münchhausen-Trick nicht funktioniert
The Competition between Competition Rules
EU Enlargement, Migration, and Lessons from German Unification
A Social Union for the EU? Contra: Europe Does Not Need a Social Union
Kurzvortag zur Eurokrise vor dem Verfassungsgericht
Risk Taking, Limited Liability and the Competition of Bank Regulators
Pension Reform and Demographic Crisis: Why a Funded System is Needed and why it is not Needed
The welfare state and the forces of globalization
Austerity, growth and inflation: Remarks on the Eurozone's unresolved competitiveness problem
The Effective Rate of Interest on Target Balances
Casino capitalism : how the financial crisis came about and what needs to be done now = Kasino-Kapitalismus <engl.>
Zum Abschied
Staatsverschuldung und dynamische Ineffizienz: Warum der Münchhausen-Trick nicht funktioniert
The Competition between Competition Rules
EU Enlargement, Migration, and Lessons from German Unification
A Social Union for the EU? Contra: Europe Does Not Need a Social Union
Kurzvortag zur Eurokrise vor dem Verfassungsgericht
Risk Taking, Limited Liability and the Competition of Bank Regulators
Pension Reform and Demographic Crisis: Why a Funded System is Needed and why it is not Needed