Esteve, Vicente; Sapena, Juan; Tamarit, Cecilio R.
(ILADES; Georgetown University; Universidad Alberto Hurtado. Facultad de Economía y Negocios; 1998)
In this paper, we analyze the evolution of the counterinflation reputation implied by joining the exchange rate mechanism of the European Monetary System. We apply a Backus and Driffill (1985a, b) type model where maintaining ...