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INTRODUCTION The main purpose of this paper is to propose an alternative stability and growth pact amongst European Union (EU) governments to underpin the introduction of a single currency and a "single market" within the EU. The alternative pact proposed in this paper embraces a number of new aspects of integration within the EU which entails a number of… (More)
and Jan Toporofsky provided useful comments on this paper.
Recent developments in macroeconomic policy, in terms of both theory and practice, have elevated monetary policy while downgrading fiscal policy. Monetary policy has focused on the setting of interest rates as the key policy instrument, along with the adoption of inflation targets and the use of monetary policy to target inflation. Elsewhere, we have… (More)
The dominant view relating to unemployment and inflation is that inflation will be constant at a level of unemployment (the non-accelerating inflation rate of unemployment, NAIRU) determined on the supply-side of the economy (and in the labour market in particular), and further the economy will tend to converge to (or oscillate around) that level of… (More)
The objective of this paper is to reflect on some of the implications of recent economic experience for the conduct of monetary and financial stability policies. It is our contention that the financial crisis and the upsurge in inflation in 2007-08 have shown that the policy model based on the new consensus in macroeconomics, which largely held sway over… (More)