We model Greek monetary policy in the 1990s and use our findings to address two interrelated questions. First, how was monetary policy conducted in the 1990s so that the hitherto highest-inflation EU country managed to join the euro by 2001? Second, how compatible is the current ECB monetary...

This study was prepared by Sven Neelsen while he was working with the ifo Institute for Economic Research. It was completed in December 2011 and accepted as a doctoral thesis by the Department of Economics at the University of Munich in May 2012. The study investigates long-run effects of...