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. |
From inside the book
Results 1-3 of 82
Page 34
... interest rate and exchange rate , could be regarded as independently exogenous policy instruments . Then trade flows or current account imbalances mainly determined the exchange rates . Various policy measures and instruments , such as ...
... interest rate and exchange rate , could be regarded as independently exogenous policy instruments . Then trade flows or current account imbalances mainly determined the exchange rates . Various policy measures and instruments , such as ...
Page 40
... interest rate ( which is equal to interest rate minus inflation ) and the expected inflation rate . Hence , if expected rates of inflation are likely to converge , so would the nominal interest rates . Devaluations are monetary ...
... interest rate ( which is equal to interest rate minus inflation ) and the expected inflation rate . Hence , if expected rates of inflation are likely to converge , so would the nominal interest rates . Devaluations are monetary ...
Page 244
... interest rates , caused bond prices to fall until they reached lower levels at which fears of possible future capital loss were dulled by a slower rate ... rate of interest is the price of being ' liquid ' but its level was determined by the ...
... interest rates , caused bond prices to fall until they reached lower levels at which fears of possible future capital loss were dulled by a slower rate ... rate of interest is the price of being ' liquid ' but its level was determined by the ...
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