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 …

that fix exchange rates and those that target inflation. Inflation targeting is a more durable policy; no country has yet … been forced to abandon an inflation target, while many have abandoned fixed exchange rates. Indeed, even though inflation … targeting began only in 1990, the duration of inflation targeting regimes is at least as long as, or longer than all alternative …

inflation and the difficulties of East European central banks in pursuing non-inflationary policies. The main obstacles are the …

have been able to abandon soft peg because of their success in substituting inflation targeting for exchange rate targeting …

that: (i) Two shocks capture 80% of the variance of key variables such as output and inflation at all horizons; (ii) The … monetary shock mainly affects the term structure of interest rates, but has virtually no effect on output and inflation so that … technology have been the main forces for the dynamics of cyclical output and inflation during the Greenspan era, while supply …

justified empirically. Both the relation between money and inflation, and between money and aggregate demand, are considered …. Regarding the first relation, it is argued that both the mean and the dynamics of inflation in present-day models are governed … monetary aggregates and inflation in no way requires a direct channel connecting money and inflation. The relevance of money …