@techreport{Scharff2006Inflation,
abstract = {In recent macroeconomic theory, relative price variability (RPV) generates the
central distortions of inflation. This paper provides first evidence on the empirical
relation between inflation and RPV in the euro area focusing on threshold effects
of inflation. We find that expected inflation significantly increases RPV if inflation
is either very low (below -1.38% p.a.) or very high (above 5.94% p.a.). In the
intermediate regime, however, expected inflation has no distorting effects which
supports price stability as an outcome of optimal monetary policy.},
author = {Juliane Scharff and Dieter Nautz},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {C23; E31; 330; Inflation; Relative Price Variability; Panel Threshold Models; Inflation; Relativer Preis; Soziale Kosten; Sch\"{a}tzung; Deutschland},
language = {eng},
number = {2006,14},
title = {Inflation and relative price variability in the euro area: evidence from a panel threshold model},
type = {Discussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank},
url = {http://hdl.handle.net/10419/19641},
year = {2006}
}
