TY - BOOK ID - 84540575 TI - Exchange Rate-Based Stabilization in Western Europe : Greece, Ireland, Italy and Portugal AU - Detragiache, Enrica. AU - Hamann, A. PY - 1997 SN - 1462309623 1452752281 1281601357 9786613782045 1451896034 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Foreign Exchange KW - Inflation KW - Macroeconomics KW - Price Level KW - Deflation KW - Open Economy Macroeconomics KW - Fiscal Policy KW - Currency KW - Foreign exchange KW - Exchange rates KW - Real exchange rates KW - Fiscal consolidation KW - Disinflation KW - Prices KW - Fiscal policy KW - Italy UR - https://www.unicat.be/uniCat?func=search&query=sysid:84540575 AB - This paper compares the experience with exchange-rate–based stabilization (ERBS) of four Western European countries with that of high-inflation developing countries. In general, the behavior of key macroeconomic variables—inflation, output, demand, the real exchange rate and the current account—in the four countries examined did not correspond to the pattern observed in developing countries, although some resemblance to this pattern could be found in Italy in 1987–92 and Greece in 1994–96. The experience with ERBS in Western Europe highlights the importance of incomes policy as an ingredient of a successful stabilization program and shows that the adoption of a looser anchor does not necessarily reduce the output cost of disinflation. ER -