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A simple inflation indicator for the euro zone

[journal article]

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), wh... view more

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.... view less

Document language
English

Publication Year
2008

Page/Pages
p. 2387-2394

Journal
Applied Economics, 40 (2008) 18

DOI
https://doi.org/10.1080/00036840600959917

Status
Postprint; peer reviewed

Licence
 PEER Licence Agreement (applicable only to documents from PEER project)