摘要：In this paper we present some descriptive evidence and simulation exercises with both
an estimated backward looking model and a calibrated general equilibrium forward
looking model that allow some light to be shed on the determinants and macroeco-
nomic implications of persistent inflation differentials in Spain within EMU.We show
that a demand expansion biased towards consumption of non-tradable goods and
real-wage rigidities -such as wage indexation clauses-are among the key determinants
of diverging price developments in Spain. Moreover, we find that in those conditions
the stabilising mechanism of terms of trade effects is relatively weak, although
the economy undergoes lasting losses in competitiveness.
