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. …

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 …

This paper explores inflation determinants within the EU and implications for new members' euro adoption plans. Factor … analysis partitions observed inflation in EU25 countries into common-origin and country-specific (idiosyncratic) components …. Cross-country differences in common-origin inflation within the EU are found to depend on gaps in the initial price level …

eurozone economies, there may be limits on the use of fiscal and labor market policies to contain inflation. The new member … states may not have policy leverage to meet the Maastricht inflation limit necessary for entering the eurozone. Casestudies …Globalization operates not only by reducing domestic pressures on inflation but also by reducing the scope of domestic …

"low-inflation" countries prior to the introduction of the euro, poses challenges for both new EU member countries and the …The Maastricht inflation criterion, designed in the early 1990s to bring "high-inflation" EU countries in line with … European Central Bank. While the criterion has positively influenced the public stance toward low inflation, it has biased the …

This paper uses a pairwise approach to investigate the main factors that have been driving inflation differentials in … the Gulf Cooperation Council (GCC) region for the past two decades. The results suggest that inflation differentials in …

The global financial crisis has exposed the limitations of a conventional inflation targeting (IT) framework in … inflation. Accordingly, we investigate possible refinements to the IT framework by incorporating financial stability …

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 …