{
  "title": "Inflation and Output Comovement in the Euro Area: Love at Second Sight?",
  "publication": "IMF Working Papers, September 11, 2013",
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  "summary": "This paper discusses comovement between inflation and output in the euro area. The strength of the comovement may not be apparent at first sight, but is clear at business cycle frequencies.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Paper title: Inflation and Output Comovement in the Euro Area: Love at Second Sight?\n- By Michal Andrle, Jan Bruha, Serhat Solmaz\n- Date: September 11, 2013\n- Series: Working Paper No. 2013/192\n- Pages: 26\n- DOI: https://doi.org/10.5089/9781475538939.001\n- ISBN: 9781475538939\n- ISSN: 1018-5941"
    },
    {
      "heading": "Major findings",
      "content": "- The strength of the comovement between inflation and output in the euro area may not be apparent at first sight, but is clear at business cycle frequencies.\n- At business cycle frequency, the output and core inflation comovement is high and stable.\n- Inflation lags the cycle in output with roughly half of its variance.\n- The strong relationship of output and inflation hints at the importance of demand shocks for the euro area business cycle."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Business cycles, Consumer price indexes, Economic growth, Inflation, Inflation targeting, Monetary policy, Prices\n- Keywords: business cycle, Business cycles, Consumer price indexes, CPI-t inflation, demand shocks, Europe, Inflation, inflation dynamics, inflation measure, Inflation targeting, inflation-output Comovement, output cycle, output-inflation comovement, trimmed mean, underlying inflation, WP"
    },
    {
      "heading": "Implications (inferred from findings)",
      "content": "- The high and stable comovement at business cycle frequencies indicates that measures of core inflation are closely linked to output fluctuations in the euro area.\n- The finding that inflation lags the output cycle and accounts for roughly half of its variance suggests that demand shocks play a prominent role in shaping euro area business cycle dynamics.\n- Policy considerations: monetary policy frameworks and inflation measures that account for demand-driven inflation dynamics may be particularly relevant for the euro area.\n\nSource: IMF Working Paper No. 2013/192, \"Inflation and Output Comovement in the Euro Area: Love at Second Sight?\" by Michal Andrle, Jan Bruha, Serhat Solmaz (September 11, 2013).\n\n---\n\n Content in this bundle\n\n- Wp13192\n  - Wp13192 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp13192 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/inflation-and-output-comovement-in-the-euro-area-love-at-second-sight-40938"
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    "Authors: Michal Andrle, Jan Bruha, Serhat Solmaz",
    "Published: September 11, 2013",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475538939.001",
    "Paper title: Inflation and Output Comovement in the Euro Area: Love at Second Sight?",
    "By Michal Andrle, Jan Bruha, Serhat Solmaz",
    "Date: September 11, 2013",
    "Series: Working Paper No. 2013/192",
    "Pages: 26",
    "DOI: https://doi.org/10.5089/9781475538939.001",
    "ISBN: 9781475538939",
    "ISSN: 1018-5941",
    "The strength of the comovement between inflation and output in the euro area may not be apparent at first sight, but is clear at business cycle frequencies.",
    "At business cycle frequency, the output and core inflation comovement is high and stable.",
    "Inflation lags the cycle in output with roughly half of its variance.",
    "The strong relationship of output and inflation hints at the importance of demand shocks for the euro area business cycle.",
    "Subject: Business cycles, Consumer price indexes, Economic growth, Inflation, Inflation targeting, Monetary policy, Prices",
    "Keywords: business cycle, Business cycles, Consumer price indexes, CPI-t inflation, demand shocks, Europe, Inflation, inflation dynamics, inflation measure, Inflation targeting, inflation-output Comovement, output cycle, output-inflation comovement, trimmed mean, underlying inflation, WP",
    "The high and stable comovement at business cycle frequencies indicates that measures of core inflation are closely linked to output fluctuations in the euro area.",
    "The finding that inflation lags the output cycle and accounts for roughly half of its variance suggests that demand shocks play a prominent role in shaping euro area business cycle dynamics.",
    "Policy considerations: monetary policy frameworks and inflation measures that account for demand-driven inflation dynamics may be particularly relevant for the euro area.",
    "**Wp13192**"
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