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Inflation and Output Comovement in the Euro Area : Love at Second Sight?.

Author: Michal Andrle
Publisher: International Monetary Fund, 2013.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
This paper discusses comovement between inflation and output in the euro area. The strength of the comovement may not be apparent at first sight, but is clear at business cycle frequencies. Our results suggest that at business cycle frequency, the output and core inflation comovement is high and stable, and that inflation lags the cycle in output with roughly half of its variance. The strong relationship of output  Read more...
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Genre/Form: Electronic books
Additional Physical Format: Print version:
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Michal Andrle
ISBN: 1306045886 9781306045889
OCLC Number: 862380227
Description: 1 online resource

Abstract:

This paper discusses comovement between inflation and output in the euro area. The strength of the comovement may not be apparent at first sight, but is clear at business cycle frequencies. Our results suggest that at business cycle frequency, the output and core inflation comovement is high and stable, and that inflation lags the cycle in output with roughly half of its variance. The strong relationship of output and inflation hints at the importance of demand shocks for the euro area business cycle.

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