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European Inflation Dynamics

Listed author(s):
  • Jordi Galí
  • Mark Gertler
  • J. David López-Salido

We provide evidence on the fit of the New Phillips Curve (NPC) for the Euro area over the period 1970-1998, and use it as a tool to compare the characteristics of European inflation dynamics with those observed in the U.S. We also analyse the factors underlying inflation inertia by examining the cyclical behavior of marginal costs, as well as that of its two main components, namely, labor productivity and real wages.

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File URL: http://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosTrabajo/00/Fic/dt0020e.pdf
File Function: First version, 2000
Download Restriction: no

Paper provided by Banco de España & Working Papers Homepage in its series Working Papers with number 0020.

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Date of creation: 2000
Handle: RePEc:bde:wpaper:0020
Contact details of provider: Web page: http://www.bde.es/

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  25. Jeff Fuhrer & George Moore, 1995. "Inflation Persistence," The Quarterly Journal of Economics, Oxford University Press, vol. 110(1), pages 127-159.
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  27. Fagan, Gabriel & Henry, Jérôme & Mestre, Ricardo, 2001. "An area-wide model (AWM) for the euro area," Working Paper Series 0042, European Central Bank.
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