features, such as the degree of centralization of wage bargaining, labour unions' inflation aversion and the degree of … monetary policy usually affects both inflation and unemployment, even when all structural parameters of the economy and of …

According to the Maastricht Treaty, EMS countries will be able to join EMU if their inflation rates are not more than 1 ….5% higher than the average of the three lowest inflation rates in the EMS. In this paper I analyse the likelihood of inflation … whether the Maastricht convergence requirement for inflation rates is not needlessly tight. …

game. Reciprocity induces a positive inflation bias and nominal fluctuations in the monetary union. …

stages of the Delors process will produce a central bank with little or no anti-inflation credibility. Here we make starkest …

employment in peripheral Europe could be restored by raising the Euro-area annual rate of inflation to about 4 percent for the …

monetary union. There is an incentive to use a surprise inflation tax to wipe out the real value of government debt and wage … monetary union with a non-cooperative or cooperative central bank. This case is stronger when the aversion to inflation is high … is little indexation. Even if all contracts are indexed, there is an incentive to create unanticipated inflation if money …

reduce the budget deficit and lower the underlying rate of inflation. The paper develops an input-output model to investigate …

fixes, a reasonably durable regime. However, most of the new stability is due to countries that float with an inflation … target. Though a few have left to join the Eurozone, no country has yet abandoned an inflation targeting regime under duress …. Inflation targeting now represents a serious alternative to a hard exchange rate fix for small economies seeking monetary …