European Monetary Union: An Application of the Fundamental Principles of Monetary TheoryThis study applies five basic economic principles to the reasons underlying European economic and monetary union. It aims to explain why EMU was agreed to; when it would be realized; how the monetary unit would be established; which means should implement it; and what purpose it should serve. |
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Page 25
... deficits . Because deficits are financed by increases in the stock of money , deficits cause inflation . If binding rules on upper limits are set , it will minimise increases in the money stock . But deficits could be financed by ...
... deficits . Because deficits are financed by increases in the stock of money , deficits cause inflation . If binding rules on upper limits are set , it will minimise increases in the money stock . But deficits could be financed by ...
Page 27
... deficits . The broad guidelines of the economic policies of Member States and the Community will be concluded by the European Council on the basis of a report by the Council , following a recommendation from the Commission ( Art . 103 ...
... deficits . The broad guidelines of the economic policies of Member States and the Community will be concluded by the European Council on the basis of a report by the Council , following a recommendation from the Commission ( Art . 103 ...
Page 28
... deficits ( Art . 104c ) . The Commission is entrusted with an additional task in monitoring the development of the ... deficits : a ) 3 % for the ratio of the planned or actual government deficit to GDP at market prices , b ) 60 % for ...
... deficits ( Art . 104c ) . The Commission is entrusted with an additional task in monitoring the development of the ... deficits : a ) 3 % for the ratio of the planned or actual government deficit to GDP at market prices , b ) 60 % for ...
Contents
Treaty on economic and monetary union | 15 |
A monetarytheoretic approach to | 76 |
7 | 111 |
Copyright | |
9 other sections not shown
Common terms and phrases
anchor argued assets assumed assumption Bundesbank chapter Cipolla commodity money Community competitive confidence externalities convergence countries debt deficits demand determined economic effects efficiency equation equilibrium ESCB established European Monetary European Monetary System exchange rate expectations external economy fixed exchange rates function fund global growth H1 to H5 Hence Hicks income increase induced inflation instability instruments integration interdependence interest rate internalised investment Keynes Keynes's liquidity preference London marginal Member monetary institutions monetary policy monetary system monetary theory Monetary Union money externalities money process money supply national central banks Optimum Currency Areas parallel currency payments political price level externalities price stability private ECU production rate of interest reserves savings sector seigniorage seigniorage externalities service of availability single currency stage of EMU store of value systemic risk technological externalities theoretical theory of money Thygesen trade transaction costs Triffin Walras Walras's paper money