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This paper examines two issues. First, we compare, based on the ratio of output-gap variability to inflation … the introduction of an implicit inflation-targeting by the EMU member countries after the Maastricht Treaty changed the … trade-off between inflation variability and output-gap variability. We employ a stochastic volatility model for the whole …
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This brief provides a detailed description of the Stability and Growth Pact, an agreement entered into by the member states of the European Union that has far-reaching implications for the long-run value of the euro, and therefore, on the real economy in terms of output growth and employment....
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