Provider: ingentaconnect Database: ingentaconnect Content: application/x-research-info-systems TY - ABST AU - Fendel, R. AU - Frenkel, M. TI - Inflation differentials in the Euro area: did the ECB care? JO - Applied Economics PY - 2009-04-01T00:00:00/// VL - 41 IS - 10 SP - 1293 EP - 1302 N2 - Compared to inflation differentials among regions in the United States, European Monetary Union (EMU) inflation differentials are larger and more persistent. Based on augmented monetary policy reactions functions, this article addresses the question whether the presence of pronounced inflation differentials in combination with low average inflation rates has influenced monetary policy decisions of the ECB. The article finds statistical evidence that the ECB took inflation differentials into account which may reflect the fear of deflation in low inflation countries like Germany. UR - M3 - doi:10.1080/00036840701522838 UR - ER -