European Parliament Library

Cross-Country Report on Inflation :, Selected Issues

This Selected Issues paper examines the causes and drivers of low inflation in European inflation targeting countries outside the euro area, focusing on the Czech Republic, Poland, Sweden, and Switzerland. It estimates the effects on inflation from the output gap and external factors, including oil price changes, nominal effective exchange rate (NEER) fluctuations, and euro area inflation spillovers. It is observed that external factors have been significant drivers of low inflation recently, though their contributions to inflation and the channels through which they operate vary across countries. Policy responses and options are also discussed, taking into account country-specific circumstances
Table Of Contents
Cover; CONTENTS; LOW INFLATION IN EUROPEAN INFLATION TARGETERS: CAUSES, SPILLOVERS, AND POLICY RESPONSES; A. Introduction; FIGURES; 1. Disinflation in Europe; B. Drivers of Low Inflation: Stylized Facts; 2. Decomposing Headline Inflation; 3. Real Sector Activity; 4. Nominal Effective Exchange Rates; C. A More Structured Approach; 5. Inflation Expectations; 6. System of Equations; 7. Decomposition of Contributions to Inflation; 8. First-Round and Second-Round Effects of External Factors; 9. Inflation Responses to External Shocks; 10. Inflation Responses to Inflation Expectation Shock; BOX
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (40 p.)
Specific Material Designation
Form Of Item

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