Working paper
Real Convergence, Price Level Convergence and Inflation in Europe
Balázs Égert, a former Visiting Fellow of Bruegel, provides a comprehensive review of the factors that can cause price levels to diverge and which are at the root of different inflation rates in Europe including the EU-27. Among others, he discusses the structural and cyclical factors influencing market and nonmarket-based service, house and goods prices, and summarise some stylised facts emerging from descriptive statistics.
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