The discipline hypothesis: What role for the EMS?
The reduction and convergence of inflation rates experienced by the members of the European Monetary System was a feature of the 1980s. This is shown in Figure 6.1 which displays (annualized) monthly inflation rates for Belgium, Denmark, France, Germany, Italy, and the Netherlands, for the period from March,1979 to December 1992.
KeywordsExchange Rate Monetary Policy Inflation Rate Real Exchange Rate Money Supply
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