Inflation expectations have been of great interest to economists because they predict how agents in an economy set prices and react to changes in various macroeconomic variables. The existence of Keynesian liquidity traps in Japan and the United States have helped emphasize the importance of...

Typescript (photocopy).

As in Caporale and Pittis, this paper finds significant evidence supporting the hypothesis of long-run equilibrium relationships between inflation rates in countries which participate in the ERM. However, the results differ in several important respects. First, the evidence rejects a dynamic...

The article explores Ireland's participation in the exchange rate mechanism (ERM) of the European Monetary System since mid-1986. It has been found that membership of the ERM per se did not have the expected moderating influence on interest rates. Ireland's participation in the ERM was intended...

Includes bibliographical references (p. 17).

In 2007 Lithuania tried to join the euro zone but it did not succeed as it did not satisfy the criterion of price stability. What causes determined the fact that Lithuania did not adopt the euro in 2007? What should Lithuania do seeking for a membership in the Economic and Monetary Union...