The multi country rational expectations Taylor model has been re-estimated for a more recent sample period, employing methods and techniques for the estimation of multi period nonlinear rational expectations models

The model is used to investigate the macroeconomic stability implications of the shift from a fully flexible exchange rate regime to a monetary union. The stability performance of different economic policy formulations is investigated via stochastic simulations

The economic policy choices for a small open economy such as the Swiss one, in the presence of EMU, has been assessed as well