Hidden Bibliographic Details
| Other authors / contributors: | Podpiera, Jiří, 1976- author.
International Monetary Fund. European Department, issuing body.
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| ISBN: | 9781498386173
1498386172
9781484389751
1484389751
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| Notes: | "October 2014."
"European Department'
Includes bibliographical references (pages 22-24).
Online resource; title from pdf title page (IMF.org Web site, viewed October 29, 2014).
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| Summary: | The synchronized disinflation across Europe since end-2011 raises the question of whether non-euro area EU countries are affected by the undershooting of the euro area inflation target. To shed light on this issue, we estimate an open-economy, New Keynesian Phillips curve, in which we control for imported inflation. Regression results suggest that falling food and energy prices have been the main disinflationary driver. But low core inflation in the euro area has also had a clear and significant impact. Countries with more rigid exchange-rate regimes and higher share of foreign value added in domestic demand have been more affected. The scope for monetary response to low inflation in non-euro area EU countries depends on concerns about financial stability and unanchoring of inflationary expectations, as well as on exchange rate regime and capital flows dynamics. --Abstract.
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| Other form: | Print version: Iossifov, Plamen. Are Non-Euro Area EU Countries Importing Low Inflation from the Euro Area? Washington : International Monetary Fund, ©2014
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