We extend the `rational-partisan' model of inflation to allow for the effects of unemployment persistence on the … dynamics of inflation. We combine this model with the `exchange-rate-regime' model of inflation and examine the experience of … the United Kingdom. Outside the fixed exchange rate regime of Bretton Woods, persistently high inflation can be attributed …

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. …

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 …

In this paper we analyse the use of inflation targeting as a device to facilitate inflation convergence of countries … outside EMU to the EMU-inflation rate, and compare it with exchange rate pegging. We find that inflation targeting suffers … from a similar credibility problem as a policy of exchange rate pegging. We also find, however, that inflation targeting is …

corrects the average debt bias, inflation, which is attuned to the Union-average debt level, is more stable. …