Most alternative blueprints for European Monetruy Union (EMU) differ in their opinions about convergence requirements or the need for binding fiscal rules and controls of individual national governments' debt policies, but there is, if not complete consensus, widespread agreement that the...

It is frequently argued that the EMS itself in connection with the high anti-inflation reputation of the German Bundesbank is responsible for the inflation reduction and convergence which member countries have experienced. Based on the game theoretical model of Backus and Driffill (1985), an...