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Money Demand in Europe (Studies in Empirical Economics)

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 |  2013-04-17 |  2013-04-17 | File type: PDF

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In 1999 a number of member states of the European Union will adopt a common currency. This change in the monetary system requires that a Eur­ opean Central Bank is set up and a common monetary policy is pursued. There is general agreement among those countries which are likely to join the common currency that price level stability has to be the ultimate objec­ tive of monetary po1icy. It is an open issue, however, what kind of policy is best suited for that purpo...

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