reduce the budget deficit and lower the underlying rate of inflation. The paper develops an input-output model to investigate …

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 …

. We explore the ability of a model with a global factor and three regional ones to capture inflation dynamics across 25 …

accommodation and zero accommodation of inflation differentials. To what extent, however, does the new freedom of capital movements …-looking behaviour in labour and financial markets to analyse this question. A rule which partially accommodates inflation differentials … is shown to be consistent with inflation convergence and perfect capital mobility, provided that the timing of …