And we are now seeing signs of limited reversals: some euro area countries with relatively high inflation rates have moved down to, or even below, the euro area average. Overall, these corrections are welcome, but  9  Asdrubali, Sorensen and Yosha, (1996) “Channels of Interstate Risk Sharing: United States 1963-1990”, Quarterly Journal of Economics, CXI, November: 1081-1110.
10  ECB (2003) “Inflation differentials in the euro area: potential causes and policy implications,” ECB report released on 16 September 2003. ECB (2005) “Monetary policy and inflation differentials in a heterogeneous currency area”, article in the ECB Monthly Bulletin of May 2005. BIS Review 64/2006  5  the point is that they have been quite slow in coming.