This study is concerned with the determinants of monetary policy in the ERM countries.We derive a monetary policy rule, an interest rate rule, from a minimization problem faced by the central bank. The loss fuction trades off costs of interest rate instability against benefits from successful...

This study, "Exchange Rates in European Monetary Integration", is an empirical contribution to exchange rate theory and international monetary cooperation.The first essay, "Realignment expectations in the ERM: 1987-1992", studies the five-year period of convergence and stability in the European...

This study is concerned with the determinants of monetary policy in the ERM countries. We derive a monetary policy rule, an interest rate rule, from a minimization problem faced by the central bank. The loss function trades off costs of interest rate instability against benefits from successful...