Bleaney, Michael; Francisco, Manuela - In: Canadian Journal of Economics 38 (2005) 4, pp. 1453-1471
a shared currency) reduce inflation and money growth. There is no evidence that soft pegs confer any monetary discipline …, after other factors are controlled for. Inflation triggers regime switches. Under hard pegs, monetary growth is unaffected … by fiscal deficits or by inflation shocks. Under soft pegs, as under floats, increased fiscal deficits and positive …