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Price and output level convergence between new member states and the existing EU necessarily implies inflation and … nominal criteria are suspended, the policy instruments required to achieve euro convergence are in the hands of the individual …
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In many countries two decision-making institutions, the government and the central bank, manage fiscal and monetary policy separately. Such decentralization can lead to a change in the optimal inflation-output trade-off. In fact lack of cooperation can result in a change in the position of the...
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