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A simple inflation indicator for the euro zone


de Hevia, Jose; Arrazola, Maria


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Abstract This paper proposes and estimates an inflation indicator for the European Monetary Union (EMU). This indicator is set up so that it is contemporarily not affected by the changes in price differentials among EMU countries. The results show that the Monetary Union Index of Consumer Prices (MUICP), which is the inflation measure that the European Central Bank (ECB) takes as a reference for monetary policy purposes, could be understating the value of the inflation in the euro zone. It is also concluded that regional peculiarities are fundamental in the evolution of prices in the different EMU countries.
Sprache Dokument Englisch
Publikationsjahr 2008
Seitenangabe S. 2387-2394
Zeitschriftentitel Applied Economics, 40 (2008) 18
DOI http://dx.doi.org/10.1080/00036840600959917
Status Postprint; begutachtet (peer reviewed)
Lizenz PEER Licence Agreement (applicable only to documents from PEER project)