Monetary and Exchange Rate Policies of the Euro Area: Selected Issues
Electronic Access:
Free Download. 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. 2002/236
Subject:
Exchange rates Foreign exchange Inflation Inflation targeting International trade Monetary policy Price stabilization Prices Trade balance
English
Publication Date:
October 29, 2002
ISBN/ISSN:
9781451812985/1934-7685
Stock No:
1EUREA0032002
Pages:
120
Please address any questions about this title to publications@imf.org