Inflation persistence and price-setting behaviour in the euro area: a summary of the Inflation Persistence Network evidence

Filippo Altissimo, Michael Ehrmann and Frank Smets

No 95, Working Paper Research from National Bank of Belgium

Abstract: This paper provides a summary of current knowledge on inflation persistence and price stickiness in the euro area, based on research findings that have been produced in the context of the Inflation Persistence Network. The main findings are: i) Under the current monetary policy regime, the estimated degree of inflation persistence in the euro area is moderate; ii) Retail prices in the euro area are more sticky than in the US; iii) There is significant sectoral heterogeneity in the degree of price stickiness; iv) Price decreases are not uncommon. The paper also investigates some of the policy implications of these findings

Keywords: price-setting; inflation persistence; monetary policy; EMU (search for similar items in EconPapers)
JEL-codes: E31 E42 E52 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2006-10
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (138)

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Persistent link: https://EconPapers.repec.org/RePEc:nbb:reswpp:200610-7

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