This study examines the impact of various monetary policy regimes on the ability to lower inflation and exchange rate … risk premiums in the EU accession countries as they undergo monetary convergence to the eurozone. It proposes a monetary … policy framework of flexible targeting of relative inflation risk premium that is believed to be credible and useful for …

should uniformly adopt. It also argues that the Maastricht criterion on inflation is inconsistent with the catching … prices, lowering of consumption taxes, etc.) to squeeze down inflation prior to accession only to shift back gears after it … by the present rule. The paper makes suggestions on how the Maastricht criterion on inflation could be adjusted and …

are clearly present and explain around 24% of inflation differentials vis-a-vis the euro area (about 1.2 percentage points … total domestic inflation (about 1.1 percentage points on average). The paper presents mixed evidence on whether the Balassa …