1. Price Level Convergence and Inflation in Europe
- Author:
- Gary Clyde Hufbauer, Erika Wada, and John H. Rogers
- Publication Date:
- 01-2001
- Content Type:
- Working Paper
- Institution:
- Peterson Institute for International Economics
- Abstract:
- Consumer price inflation in the euro area declined steadily during most of the 1990s. However, in the last two years, both headline and core inflation have risen throughout the area, and sizable cross-country differences in inflation have re-emerged. This is illustrated by Figure 1, which shows the headline consumer price inflation rate for the euro area as a whole and for select member countries. As of October 2000, all euro area countries had headline inflation rates above the European Central Bank's 2 percent medium-term ceiling, with rates ranging from 2.1 percent in France and Austria to 6 percent in Ireland. In Greece, which will join the euro area on 1 January 2001, inflation was 3.8 percent.
- Topic:
- Economics and Political Economy
- Political Geography:
- Europe, Greece, France, and Austria