Titlebook: Exchange-Rate Regimes and Currency Unions; Proceedings of a con Ernst Baltensperger (Professor of Economics),Hans- Conference proceedings 1

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The Credibility of Central Banks in Controlling Inflation and the Effect on Exchange-rate Volatilityons. ‘Destabilising’ was taken to mean the existence of ‘bandwagon’ effects, possibly due to the existence of chartists. Frankel and Froot (1987a) found evidence that long-term expectations (of over a year) exhibited a return to a mean, whereas short-term expectations exhibited a ‘bandwagon’ effect.

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Polish Journalists in the 1980sin France and Great Britain — vehemently criticise this proposal. The question of independence of a possible future European Central Bank System (ECBS) will thus certainly remain an important matter of debate in the process of European monetary integration.

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