Monetary Policy in an Emerging European Economic and Monetary Union: Key Issues
IMF Working Papers, August 1, 1990
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- Monetary Policy in an Emerging European Economic and Monetary Union: Key Issues
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Bibliographic details
- Authors: Jacob A. Frenkel, Morris Goldstein
- Published: August 1, 1990
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451958522.001
Overview
- Paper discusses key issues relating to the design and implementation of monetary policy in an emerging European economic and monetary union.
- Specific institutional proposals for transition to EMU are neither endorsed nor dismissed.
- The paper is organized to: examine goals of monetary policy; consider implementation issues; and emphasize the importance of fiscal discipline and mechanisms to encourage it.
Goals of monetary policy
- Explores the interrelationships among:
- price stability,
- current account equilibrium,
- exchange rate stability.
Implementation of monetary policy
- Issues addressed:
- coordination versus autonomy,
- rules versus discretion,
- the role of sterilized official intervention.
Fiscal discipline and mechanisms
- Emphasizes the importance of fiscal discipline.
- Evaluates several alternative mechanisms for encouraging fiscal discipline.
Subjects and keywords
- Subject: Exchange rate arrangements, Exchange rate policy, Exchange rate stability, Exchange rates, Fiscal policy, Foreign exchange
- Keywords: banking market, common currency, EMU participant, Europe, exchange market intervention, exchange rate, Exchange rate arrangements, exchange rate commitment, Exchange rate policy, Exchange rate stability, Exchange rates, monetary policy, monetary policy coordination, sterilized exchange market intervention, WP
Source: IMF Working Papers — "Monetary Policy in an Emerging European Economic and Monetary Union: Key Issues" by Jacob A. Frenkel and Morris Goldstein (August 1, 1990), Working Paper No. 1990/073.