of a fiscal target zone model, where EMU member governments are willing to abide with the commitment to debt stability … means providing a monetary and/or fiscal emergency backstop to the irreversibility principle. Drawing on the target-zone …

one-sided target zone) vis-a-vis the euro to fight deflationary pressures in the aftermath of the Great Financial Crisis … target zone framework developed by Krugman (1991) that allows monetary authorities to determine ex-ante the maximum size of … foreign exchange market interventions that are expected to be necessary to implement and maintain a one-sided target zone. An …