PORTUGUESE MONETARY AND FISCAL POLICY

WITHIN THE EMS

By

Abel M. Mateus

Sweder van Wijnbergen

In April 3, 1992 Portugal took the historical decision of joining the EMS, within the six-percent

band, changing significantly the institutional background for macroeconomic policies.

Since the end of 1990 inflation has been in a descendent path, starting from 13 and dropping to 9

percent in July of 1992…