derogation from adopting the euro as their currency (that is, each country joining the EU commits to replace its national … currency with the euro, but can choose when to request permission to do so). For most of these countries, adopting the euro … convergence with the rest of the euro area. …

Exchange rate-based inflation stabilization (ERBS) policies are associated with a boom-recession cycle in economic … forward-looking pricing behavior without inflation stickiness and attribute the slow decline in inflation to the consumption …-looking components of inflation weigh approximately equally in pricing behavior, and therefore, that inflation is partially sticky. The …

In this paper three possible reasons are examined for a sluggish inflation response to a hard currency peg. Models of … credibility and the speed of private sector learning, which are shown to have a major impact on the speed of inflation adjustment …. But even if individual agents believe the government will not devalue, it is shown that inflation inertia can still arise …

Inflation in Southeastern European (SEE) countries has been comparable with euro area inflation, partly owing to on the … inflation-targeting regime pursued in Albania. The analysis also explores additional heterogeneity between SEE and other regions …

The ECB's objective of medium-term inflation below 2 percent has been portrayed by critics as ambiguous, asymmetric …, and excessively stringent. This paper attempts a comprehensive evaluation of the trade-offs for the euro area and finds … that: (1) in terms of guiding inflation expectations and policymaking, the current definition has functioned much as would …

The welfare state was created after 1950 with counterproductive mechanisms and this caused high inflation and high …

Euro-area inflation fixed contemporaneously, should be only transitory. If this is the case, the rate of inflation of the …The stability of inflation differentials is an important condition for the smooth working of a currency area, such as … the European Economic and Monetary Union. In the presence of stability, changes in national inflation rates, while holding …

Euro area inflation fixed contemporaneously, should be only transitory. If this is the case, the rate of inflation of the …The stability of inflation differentials is an important condition for the smooth working of a currency area, such as … the European Economic and Monetary Union. In the presence of stability, changes in national inflation rates, while holding …

Euro-area inflation fixed contemporaneously, should be only transitory. If this is the case, the rate of inflation of the …The stability of inflation differentials is an important condition for the smooth working of a currency area, such as … the European Economic and Monetary Union. In the presence of stability, changes in national inflation rates, while holding …