, Eastern Europe emerged into two groups of countries with radically contrasting monetary regimes (Currency Boards and Inflation …In the late 90's, after severe financial and economic crisis, accompanied by inflation and exchange rate instability … relationship between inflation, output growth, nominal and real uncertainties from 2000 till now. In other words, we test the …

set their monetary policy by using all the information relevant for inflation and output projections. In Europe, a … whether the real money gap contains more information about future inflation in Europe, than an indicator based on the growth … central banks' monetary policy must be credible if the authorities want to curb inflation. A second view is that central banks …

inflation, both as an objective and as an intermediate instrument. We want to show that other variables like employment can be … that they can be function of employment only, which then dominates inflation for use in the policy rule. …