-linear features. In order to do so, we develop a Markov switching model and apply it to a sample of low and high inflation countries …. The empirical analysis shows that for the high inflation countries the relationship between news in the fundamentals and … the exchange rate changes is stable and significant. This is not the case, however, for the low inflation countries, where …

money and inflation. When analysing the full sample of countries we find a strong positive relation between the long …-run inflation and money growth rate. The relation is not, however, proportional. The strong link between inflation and money growth … is almost wholly due to the presence of high (or hyper-) inflation countries in the sample. The relationship between …

money and inflation. When analysing the full sample of countries, we find a strong positive relation between long …-run inflation and the money growth rate. The relation is not proportional, however. The strong link between inflation and money … growth is almost wholly due to the presence of high-(or hyper-) inflation countries in the sample. The relationship between …

According to the Maastricht Treaty, EMS countries will be able to join EMU if their inflation rates are not more than 1 ….5% higher than the average of the three lowest inflation rates in the EMS. In this paper I analyse the likelihood of inflation … whether the Maastricht convergence requirement for inflation rates is not needlessly tight. …

money and inflation. When analysing the full sample of countries we find a strong positive relation between the long …-run inflation and money growth rate. The relation is not, however, proportional. The strong link between inflation and money growth … is almost wholly due to the presence of high (or hyper-) inflation countries in the sample. The relationship between …

inflation/unemployment trade-off since 1979 which on average was more pronounced than in the rest of the OECD area (including … the other European countries). We interpret this evidence as follows: the EMS forced its high-inflation members to follow …

In this paper we analyse the use of inflation targeting as a device to facilitate inflation convergence of countries … outside EMU to the EMU-inflation rate, and compare it with exchange rate pegging. We find that inflation targeting suffers … from a similar credibility problem as a policy of exchange rate pegging. We also find, however, that inflation targeting is …