Optimal Inflation Weights in the Euro Area

Daniela Bragoli, Massimiliano Rigon () and Francesco Zanetti

International Journal of Central Banking, 2016, vol. 12, issue 2, 357-383

Abstract: This study investigates the appropriate measure for stabilizing inflation in the euro area. We use a model that accounts for both the heterogeneity observed in the degree of price rigidities across regions and sectors, and asymmetry of real disturbances in relative prices. Our work shows that the optimal weights to assign to each region or sector result from complex interactions between the degree of price stickiness, economic size, and the distribution of shocks within regions.

JEL-codes: E52 F41 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Optimal inflation weights in the euro area (2016)
Working Paper: Optimal Inflation Weights in the Euro Area (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ijc:ijcjou:y:2016:q:2:a:8

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