Monetary and Exchange Rate Policies of the Euro Area : Selected Issues

Author/Editor:

International Monetary Fund

Publication Date:

October 29, 2002

Electronic Access:

Free Full Text (PDF file size is 4152 KB).Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This paper examines monetary and exchange rate policies of the euro area. The paper reviews the European Central Bank’s definition of price stability, and examines the factors determining “the optimal rate of inflation” in the euro area. It reviews the benefits of price stability, including the reduction in the distortions of savings and investment behavior that stem from the interaction between nominal tax systems and inflation. It then goes on to evaluate arguments for maintaining a small positive inflation rate in the context of the euro area.

Series:

Country Report No. 02/236

Subject:

English

Publication Date:

October 29, 2002

ISBN/ISSN:

9781451812985/1934-7685

Stock No:

1EUREA0032002

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

120

Please address any questions about this title to publications@imf.org