Defining a macroeconomic framework for the Euro area / Alberto Alesina ... [and others].

Format:

Book

Contributor:

Alesina, Alberto.

Centre for Economic Policy Research (Great Britain)

Series:

Monitoring the European Central Bank ; 3.

Monitoring the European Central Bank ; 3

Language:

English

Subjects (All):

European Central Bank.

Monetary policy--European Union countries.

Monetary policy.

Fiscal policy.

European Union countries.

Fiscal policy--Euroepan Union countries.

Banks and banking, Central--European Union countries.

Banks and banking, Central.

Physical Description:

xvi, 50 pages : illustrations ; 28 cm.

Place of Publication:

London : Centre for Economic Policy Research, [2001]

Summary:

The third title in the MECB series begins with a review of the main events of the year and how the ECB has dealt with them. The authors focus mainly on eurozone inflation and the exchange rate of the euro but also address a few specific issues, such as transparency of monetary policy and the related decision, recently announced by the ECB, to publish its internal forecasts. The report then deals with three broader issues: the relationships between the ECB and the eurogroup; how the Council make monetary policy decisions; and macroeconomic adjustment in the monetary union. The MECB Update: July 2001 will mail out free with this title when it becomes available.

Contents:

2. Monetary and fiscal policy coordination in EMU 6

2.2 Coordination when the 'houses are in order' 7

2.3 The political economy of coordination 9

2.4 Coordination without inflation targeting 11

2.5 Multiple fiscal authorities 11

2.6 Meetings between the ECB and the Eurogroup 13

3. Country adjustments within the euro area: lessons after two years 14

3.1 Relative growth and inflation performance 14

3.2 Equilibrium inflation rates and the Balassa-Samuelson effect 16

3.3 How to adjust when adjustment is needed? 18

3.4 Overheating in Ireland 21

3.5 Spain 23

3.6 Tentative conclusions 25

4. How does the ECB set interest rates? 26

4.1 A first look at the numbers 26

4.2 A benchmark interest rate rule 27

5. Monitoring the ECB 36

5.1 Inflation 36

5.2 The exchange rate 37

5.3 The ECB and the exchange rate of the euro 40

5.4 Projections, benchmarks and forecasts 41

5.5 Transparency 46

5.6 The M3 pillar 47.

Notes:

"The research underlying this publication was supported by Citibank ... MPS Finance Banca Mobiliare SpA, and Groppo Monte Paschi Asset Management SGR."

Includes bibliographical references (pages 49-50).

ISBN:

1898128596

OCLC:

47017878