inflation. The labour market is characterized by the degree of centralization of bargaining and by the degree of trade unions …’ inflation aversion. The latter leads each union to moderate its wage demands in order to induce the Central Bank (CB) to inflate …) triggers two opposite effects on real wages, unemployment and inflation. The decrease in the number of unions reduces the …

monetary union. There is an incentive to use a surprise inflation tax to wipe out the real value of government debt and wage … monetary union with a non-cooperative or cooperative central bank. This case is stronger when the aversion to inflation is high … is little indexation. Even if all contracts are indexed, there is an incentive to create unanticipated inflation if money …

stable rates of inflation in many countries. Consequently, the main goal of this Paper is to offer an overview of the main … policy issues arising in a low inflation environment and their practical relevance so as to identify the main challenges … nominal wage or price rigidities? What does the low inflation environment imply about the relative importance and effects of …

It is often argued that the EMS is an effective disciplinary device for inflation-prone countries in the EEC, since it … this question appropriately, one must consider that EMS membership brings potentially large credibility gains to policy …-makers in high-inflation countries: the reason is that not only it attaches an extra penalty to inflation (in terms of …

difference of policies and outcomes for each party over an electoral period. Under discretion inflation is 10-30 per cent higher … than under precommitment and unemployment is temporarily and modestly lower; under precommitment inflation is negligible …

stages of the Delors process will produce a central bank with little or no anti-inflation credibility. Here we make starkest … acquired by all as a result of Bundesbank credibility. As regards EMU, it is possible that too rapid a move through the latter … assumption of no credibility under EMU, and compare it with hard-EMS for various supply and demand shocks using a two-bloc model …

. We explore the ability of a model with a global factor and three regional ones to capture inflation dynamics across 25 …

accommodation and zero accommodation of inflation differentials. To what extent, however, does the new freedom of capital movements …-looking behaviour in labour and financial markets to analyse this question. A rule which partially accommodates inflation differentials … is shown to be consistent with inflation convergence and perfect capital mobility, provided that the timing of …

application to forecasts of the Swedish inflation rate where forecast combination using the predictive likelihood outperforms …

of credibility (private inflation expectations coinciding with the inflation target) are discussed. Credibility improves … inflation (with base drift in the price level) and price-level stability (without such base drift) are compared, and a suitable … loss function (corresponding to flexible inflation targeting) is discussed, including the index and level for the inflation …