@article{HuebnerMalteKlemmMarcus, author = {H{\"u}bner, Malte, and Klemm, Marcus,}, title = {Preferences over inflation and unemployment in Europe - A north-south divide?}, series = {International Review of Economics}, volume = {62}, journal = {International Review of Economics}, publisher = {Springer Nature}, doi = {10.1007/s12232-015-0235-y}, pages = {319 -- 335}, abstract = {We use data on individual life satisfaction to estimate the costs associated with inflation and unemployment for 15 European countries, starting in the 1970s. This allows us to calculate country-specific inflation aversion relative to unemployment aversion. We find a considerable heterogeneity across European countries. There is no or only a small degree of relative inflation aversion for those countries that were characterized by above-average inflation rates in the decade preceding the current crisis in the euro area. Among the countries with a higher relative inflation aversion, the results correspond less clearly with historical inflation patterns.}, language = {en} }