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Caraballo M. Ángeles (University of Seville, Spain), Efthimiadis Tilemahos (Institute for Energy and Transportation, Joint Research Centre, European Commission)
Divergent Optimal Inflation Rates in Euro Area Countries or 'Does One Size Fit All'?
Argumenta Oeconomica, 2014, nr 1 (32), s. 15-40, rys., tab., bibliogr. 29 poz.
Słowa kluczowe
Strefa euro, Polityka pieniężna, Zmienność poziomu cen, Stopa inflacji
Eurozone, Monetary policy, Price level variability, Inflation rates
summ., M. Ángeles Caraballo acknowledges financial support from the Junta de Andalucía (CICE, Proyecto de Excelencia SEJ-4546).
The aim of this paper is to derive the optimal inflation rate for the euro area (EA) countries from the relationship between the aggregate inflation and the Relative Price Variability (RPV). In order to achieve this goal, we have utilized monthly data for the Harmonized Index of Consumer Prices between January 1997 and June 2013 for the first twelve EA countries and for the EA aggregate. In the first stage, parametric and semiparametric estimations allow us to find that the inflation-RPV relationship shows a U-shaped functional profile for the majority of the countries. In the second stage, within this benchmark and using both kinds of estimations, we obtain the optimal inflation rate defined as the one that minimizes the RPV. Moreover, we test the sensitivity of our results to the time period and, for semiparametric estimation, to the bandwidth selected. For EA individual countries and for the EA aggregate, it is formally shown that although the European Central Bank's "below but close to 2%" inflation target is (almost) optimal for the EA average, it is not close to the optimum inflation rate for most of the individual EA countries.(original abstract)
Dostępne w
Biblioteka Główna Uniwersytetu Ekonomicznego w Krakowie
Biblioteka Szkoły Głównej Handlowej w Warszawie
Biblioteka Główna Uniwersytetu Ekonomicznego w Katowicach
Biblioteka Główna Uniwersytetu Ekonomicznego w Poznaniu
Biblioteka Główna Uniwersytetu Ekonomicznego we Wrocławiu
Pełny tekst
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