Euro

Germany has only itself to blame for its woes

ARTICLE - This article argues that one size always fits all in any monetary area, referring to the euro zone interest rate. And asks the question, Has the euro in any way aggravated the problem, compared with past monetary arrangements?

Sweden can thrive without the euro

ARTICLE - After Sweden named the date for its euro referendum this article by a Swedish politician says that little enthusiasm exists across Europe for the euro and Swedes themselves are sceptical. It also claims that Britain would be striking a "blow…

ECB overhaul raises hopes of softer price target

The ECB has often been criticised as slow to react with interest rate moves. But with the constraint of a narrow inflation target its hands have been tied, restricting its ability to provide the euro zone economies with the stimulus they need. But now we…

Padoa-Schioppa - Where does the euro stand?

SPEECH - In the speech 'International currencies: where does the euro stand' Tommaso Padoa-Schioppa of the ECB said the role of the euro as an international reserve currency has remained subdued, although the international role of the currency has been…

Remsperger on Germany at the Crossroads

SPEECH - In the speech 'Germany at the Crossroads' Hermann Remsperger of the Deutsche Bundesbank said with regard to wage rate policy, the Bundesbank repeatedly makes clear that the rate of inflation in Germany is lower than the euro-area average. The…

ECB may issue €1 note to help curb price rises

The European Central Bank is to discuss the idea of introducing one euro banknotes as a possible way to curb inflation. However, the high velocity of circulation of low value notes coupled with higher production costs would make this an expensive option.

Poland's central bank pushing for euro adoption

Central bank president Leszek Balcerowicz has said that the adoption of the euro by Poland in the years 2006-2007 would be beneficial, but only if the budget deficit is tackled. The European Commission is apparently discouraging the move in a new, still…

ECB wants all euro aspirants to join ERM

The European Central Bank (ECB) has recommended that all countries seeking to join the euro must first spend at least two years in the exchange rate mechanism (ERM). This contrasts with comments from Swedish politicians who recently said they would try…

ECB's Issing warns of limits to transparency

There are limits to the degree of transparency that central banks are able to supply, European Central Bank chief economist and executive board member Otmar Issing said on Monday. He also noted that the introduction of the euro had raised peoples…

ECB Press Conference

PRESS CONFERENCE - Duisenberg said that since the last rate cut there has been no abatement in the uncertainty on the euro zone economic outlook but more uncertainty than ever. This has increased concerns about the sluggishness of the economy. The half…

Monitoring the European Central Bank - Update

RESEARCH - Surviving the Slowdown, Monitoring the European Central Bank Update No. 4, December 2002, authors include David Begg and Paul De Grauwe. MECB 4 describes the challenge for monetary policy and assesses the ECB response. Interest rates fell much…

Issing on the euro after four years and deflation

SPEECH - In the speech 'The euro after four years: is there a risk of deflation?' Otmar Issing of the ECB said stagflation was a bigger threat to the euro zone than deflation. This he said, "deserves much more attention than the risk of deflation". In a…

Practical Issues Arising from the Euro

REPORT - The Bank of England has published the latest in its twice yearly series 'Practical Issues Arising from the Euro' for November 2002. Part 1 reports on the UK's performance as a euro financial centre since the launch of the euro at the beginning…

Interview with Swedish PM on the euro referendum

INTERVIEW - Following the recent announcement that Sweden will hold a referendum on euro entry next year, Prime Minister Goran Persson spoke to Swedish radio on the topic. In the interview he said the exact wording of the question would be decided later…

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