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
... increase reserves resulting in an increase of the money supply . Theoretically , the same logic is applied to budget deficits . Because deficits are financed by increases in the stock of money , deficits cause inflation . If binding ...
... increase reserves resulting in an increase of the money supply . Theoretically , the same logic is applied to budget deficits . Because deficits are financed by increases in the stock of money , deficits cause inflation . If binding ...
Page 169
... increase in investment when there is an increase in demand for money , and in the second there are no increases in its stock to lower the marginal efficiency of holding it " . It should be said that the inelasticity of supply is not ...
... increase in investment when there is an increase in demand for money , and in the second there are no increases in its stock to lower the marginal efficiency of holding it " . It should be said that the inelasticity of supply is not ...
Page 174
... increase to meet the increased demand for transactions . For a given supply of money such an increase would cause a rise in the rate of interest unless two assumptions are made : a ) a liquidity trap exists , or b ) the monetary ...
... increase to meet the increased demand for transactions . For a given supply of money such an increase would cause a rise in the rate of interest unless two assumptions are made : a ) a liquidity trap exists , or b ) the monetary ...
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