It is often argued that the EMS is an effective disciplinary device for inflation-prone countries in the EEC, since it …-makers in high-inflation countries: the reason is that not only it attaches an extra penalty to inflation (in terms of … inflationary finance, we find that they will always prefer EMS membership. When the policy-maker needs revenue from the inflation …

which an emerging market central bank that targets inflation might lose control of inflation--in other words of the … perverse effect on inflation. We show that the presence of default risk reinforces the possibility that a vicious circle might …

strong distribution and dynamic effects. The transition may imply the decline of incumbent firms. Unemployment may increase …