According to theory, inflation persistence should have less variance across countries under pegged than floating … allowing for the upward bias to persistence estimates created by shifts in mean inflation, the paper finds persistence has a … accommodative of inflation under floating rates, most probably because of the shifts in monetary policy rather than those in …

-correlations between domestic industrial output and a large group of macroeconomic variables (including fiscal variables, wages, inflation …

shocks this model generates the empirically observed slow (inertial) and prolonged (persistent) reaction of the inflation … shocks mostly through a change in the long-run or inflation updating component of their pricing policies. With staggered … pricing policies there is a time lag before this is reflected in aggregate inflation …

a precondition, but exposure to foreign and financial shocks and high steady state inflation make joining the EMU … credibility a pegged exchange rate regime yields a lower loss compared to an inflation targeting policy, even if this policy … achieved for a policy-maker to adopt inflation targeting over a strict exchange rate targeting regime. Full credibility is not …