Differences in the structure of economies represent another issue which is often forgotten in the assessment of central bank policies.
Divergences in the degree of economic flexibility, in particular, can affect the degree of intrinsic inflation persistence, namely the inertial character of inflation which cannot be reduced by the central bank despite its best efforts.8 Two central banks with similar  6  See for example Ubide (2005). 7  See for instance Ehrmann and Fratschzer (2005).