Challenges for Monetary Policy in Euroland

Bibliographic Data

ID10070900
AuthorsPaul De Grauwe (0000-0003-0229-1641, KU Leuven, corresponding author)
Year2002
Volume40
Issue4
Pages693-718
Publication date2002-11-01
Open AccessYes
TypeARTICLE
VenueJCMS Journal of Common Market Studies (JOURNAL)
Journal identifiersISSN: 0021-9886 • E-ISSN: 1468-5965
PublisherWiley (PUBLISHER • GB)
DOI10.1111/1468-5965.00394
OpenAlexW2134565311
LanguageEN
Citations received7

Despite the economic and political success of its launch, the challenges ahead for the euro are formidable. This article analyses some of these challenges, focusing particularly on the monetary policy strategy of the European Central Bank (ECB) and on the implications of enlargement of the monetary union to up to 27 Member States. The monetary policy strategy and inflation target of the ECB are criticized for being unrealistic and possibly damaging to the ECB’s credibility. It is shown that unless the mechanisms for taking interest rate decisions are rethought, there are risks that the wrong decisions will be taken after enlargement

Credibility · Economic and monetary union · Economic policy · Economics · European union · Inflation (cosmology · Inflation targeting · Interest rate · International economics · Macroeconomics · Monetary economics · Monetary hegemony · Monetary policy · Political science · Politics · Resizing · European Monetary and Fiscal Policies · Fiscal Policies and Political Economy · Global Financial Crisis and Policies

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