Fundamentals of Monetary Policy in the Euro Area

Prof. Dr. Dieter Gerdesmeier
Fundamentals of Monetary Policy in the
Euro Area
Concepts – Markets – Institutions
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Download free eBooks at bookboon.com
2

Prof. Dr Dieter Gerdesmeier
Fundamentals of Monetary Policy in the
Euro Area
Concepts – Markets – Institutions
Download free eBooks at bookboon.com
3

Fundamentals of Monetary Policy in the Euro Area: Concepts – Markets – Institutions
2
nd
edition
© 2014 Prof. Dr Dieter Gerdesmeier &
bookboon.com
ISBN 978-87-403-0763-4
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Fundamentals of Monetary Policy
in the Euro Area
4

Contents
1 Introduction and motivation 14
2 Basic concepts 15

2.1 Learning objectives 15
2.2 Some economic concepts 15
2.3 Some statistical concepts 16
3 A short history of EMU 20
3.1 Learning objectives 20
3.2 e roadmap to EMU 20
3.3 Convergence criteria 22
3.4 e concept of an optimal currency area 24
3.5 Advantages and disadvantages of a monetary union 25
3.6 Some controversies about the road 27
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Fundamentals of Monetary Policy
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4 Institutions 28
4.1 Learning objectives 28
4.2 e European Union 28
4.3 e European Central Bank 29
4.4 Presidents of the European Central Bank 30
4.5 e Rise of the Euro 32
4.6 A closer look at the U.S. Federal Reserve System 33
4.7 A closer look at the Bank of Japan 34
4.8 A closer look at the Bank of England 34
4.9 Decision-making modalities 35
4.10 Independence and accountability 36
5 Inlation 41
5.1 Learning objectives 41
5.2 Basic concepts 41
5.3 Eects of ination 41
5.4 Measuring ination 43
5.5 Core and non-core ination 44
5.6 Measurement problems 45
5.7 Hyperination 45
5.8 Sacrice ratios 48
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