Discussion paper

DP658 Inflation Convergence During the Transition to EMU

According to the Maastricht Treaty, EMS countries will be able to join EMU if their inflation rates are not more than 1.5% higher than the average of the three lowest inflation rates in the EMS. In this paper I analyse the likelihood of inflation rates converging to the levels set out in the Maastricht Treaty, and conclude that this is unlikely to be the case. I study whether the Maastricht convergence requirement for inflation rates is not needlessly tight.

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Citation

De Grauwe, P (1992), ‘DP658 Inflation Convergence During the Transition to EMU‘, CEPR Discussion Paper No. 658. CEPR Press, Paris & London. https://cepr.org/publications/dp658