▁ante ▁( by ▁keeping ▁interest ▁rates ▁very ▁low ), ▁thus ▁in ▁turn ▁prim ing ▁the ▁Euro zone ▁for ▁high ▁infl ation ▁( with ▁Barry ▁E ich eng reen ). ▁ ▁More ▁general ▁contributions ▁by ▁von ▁H agen ▁to ▁mon et ary ▁econom ics ▁include ▁his ▁analysis ▁( with ▁Man fred ▁Ne umann ) ▁of ▁the ▁effect iveness ▁of ▁infl ation ▁target ing ▁throughout ▁the ▁ 1 9 9 0 s , ▁where in ▁they ▁conclude ▁that ▁it ▁was ▁effective ▁in ▁reducing ▁the ▁level ▁and ▁vol at ility ▁of ▁infl ation ▁by ▁impro ving ▁the ▁cred ibility ▁of ▁central ▁bank ' s ▁mon et ary ▁policies ▁and ▁his ▁study ▁of ▁the ▁determin ants ▁of ▁bank ing ▁cr ises ▁( with ▁Tai - K u ang ▁Ho ), ▁which ▁finds ▁only ▁a ▁neg lig ible ▁role ▁for ▁money ▁base ▁growth ▁on ▁the ▁lik elihood ▁of ▁bank ing ▁cr ises , ▁whereas ▁real ▁G DP ▁slow down , ▁low ▁real ▁interest ▁rates , ▁hyper infl ation , ▁large ▁fis cal ▁def ic its ▁and ▁exchange ▁rate ▁over valu ation ▁tend ▁to ▁be ▁reliable ▁predict ors ▁of ▁bank ing ▁cr ises . ▁ ▁Pos itions ▁on ▁economic ▁policy ▁▁ ▁Mir ror ing ▁his ▁academic ▁work , ▁J ürgen ▁von ▁H agen ▁has ▁repeatedly ▁emphas ized ▁the ▁importance ▁of ▁fis cal ▁discipline ▁and ▁small ▁fis cal ▁def ic its ▁at ▁the ▁German ▁and ▁European ▁level . ▁In ▁ 1 9 9 8 , ▁he ▁was ▁one ▁of ▁the ▁sign ator ies ▁of ▁the ▁Peters berg ▁Dec laration ▁on