This paper investigates the relation between the dynamics of inflation and exchange-rate regimes. It demonstrates that … associated with negligible persistence of inflation in the industrial economies, while regimes of managed exchange rates are … associated with very high persistence of inflation: the interwar period is associated with persistent deflation, the more recent …

natural rate of unemployment. In addition, because of differential inflation across countries, real exchange rates become …

This Paper studies the behaviour of inflation after nine large post-1990 contractionary devaluations. A salient feature … of the data is that inflation is low relative to the rate of devaluation. We argue that distribution costs and …

Countries that have pursued distortionary macroeconomic policies, including high inflation, large budget deficits and …

expected means of future interest rates, exchange rates and inflation. More recently, these methods have been refined to rely …

-2001 had an important impact on inflation divergence within the EMU and in particular the surge in Ireland’s inflation to over … contribute to inflation convergence and in particular to a fall in Irish inflation? Fortunately for us, the theory has passed the … test with flying colours. Irish inflation stopped dead in its tracks: consumer prices were unchanged between May and …

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 …

with targeting the rate of inflation. Critical advances in the measurement of inflation have proved decisive in bringing …