Publication
Sep 2008
This paper examines the issue of price stability and especially its short-run cost in terms of foregone output and higher unemployment. It aims to find the "sacrifice ratio" for the Euro area and for US. The authors find that the cost of reducing inflation is in most cases higher in the US than in the Euro area. However, they also argue that there is a long-run "hysterisis" cost that is specific to the Euro area.
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English (PDF, 32 pages, 200 KB) |
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Author | Andrea Beccarini, Daniel Gros |
Series | CEPS Working Documents |
Issue | 302 |
Publisher | Centre for European Policy Studies (CEPS) |
Copyright | © 2008 Andrea Beccarini, Daniel Gros |