The behaviour of the exchange rate under a floating exchange rate regime for a small open economy with perfect capital mobility may appear like a managed float or even a firmer peg. We present a canonical new neo-classical synthesis open economy model where the central bank follows a strategy...

This paper investigates the performance of optimised interest rate rules when there is uncertainty about a key determinant of the monetary transmission mechanism, namely the degree of persistence characterising the inflation process. The paper focuses on the euro area and utilises two variants of...

After the switch to a floating exchange rate in 1973, the Swiss National Bank at first adopted annual monetary targets and in the 1990s shifted to a medium-term targeting strategy. In this paper I review the SNBu0092s internal policy analysis, an aspect of Swiss monetary targeting that has...

1. The Eastern neighbouring countries (NCs) can be divided into two groups: one comprised of the countries where ENP’s benefits are (at least rhetorically) acknowledged (Georgia, Moldova, and Ukraine) and the other where the ENP is viewed with suspicion and where the Europeanisation drive is...

This paper offers an alternative explanation for the behavior of postwar US inflation by measuring a novel source of monetary policy time-inconsistency due to Cukierman (2002). In the presence of asymmetric preferences, the monetary authorities end up generating a systematic inflation bias...

The briefing paper seeks to provide an overview of the political, economic and social costs and benefits for the neighbouring countries in adapting their policies in the areas suggested by the ENP as well as to highlight the main constraints and factors favourable to pursuit of ENP objectives in...

Pyrolysis technology has been assessed in this report based on an examination of the costs, the benefits, the barriers to market uptake, and the potential for EU funding to contribute to innovation and/or technology deployment. Given the benefits associated with the application of biochar to...