Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/318139 
Year of Publication: 
2015
Series/Report no.: 
BCAM Working Paper No. 1503
Publisher: 
Birkbeck, University of London, Birkbeck Centre for Applied Macroeconomics (BCAM), London
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.
Subjects: 
Optimal monetary policy
Euro Area regions
asymmetric shocks
asymmetric price stickiness
JEL: 
E52
F41
Document Type: 
Working Paper

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