rate regime and economicperformance. The paper argues that adopting a pegged exchange rate canlead to lower inflation, but …

adjustment rule, under alternative inflation targets, in terms of output losses in a macroeconomic model, using European Union … credibility, and that a positive inflation target, as opposed to zero inflation, leads to higher and less volatile output. These … countries supports country-specific flexible inflation targeting …

into a unified framework in which inflation, growth, and the balance of payments are simultaneously determined. The …