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The stability of the inflation rate in the Euro area: the role of Globalization and labour market

Antonio Forte

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper I present a statistical analysis of some macroeconomic data that can shed more light on the causes of the low inflation rate that we registered in the Euro area during the last years. I focus on both the globalization and the labour market for their importance, as external and internal factor respectively, in influencing the domestic inflation. The main finding of this study, in which I also present an international comparison, is that the firms’ behaviour can help explain the stable trend of the inflation rate in the Euro area. This result can be interpreted as a signal of the redistribution, in favour of the firms, of the positive features of the globalization process

Keywords: Inflation rate; Euro area; Exchange rate; Labour cost (search for similar items in EconPapers)
JEL-codes: E31 F14 L25 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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