Publication
Sep 2012
In light of the sovereign debt crisis in Southern Europe some propose that the North should accept inflation rates above the euro-area average to ease the burden of adjustment in the South. In order to understand better some of the welfare consequences of proposals like this one, this note looks into what rate of inflation a central bank should target in a monetary union and what determines a region's weight in this target.
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English (PDF, 8 pages, 330 KB) |
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Author | Henning Weber |
Series | Kiel Institute Policy Briefs |
Issue | 54 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2012 The Kiel Institute for the World Economy |