Cointegration is a new way of looking at the relationship between economic variables. If rNL and rDE are interest rates on the same instrument in the Netherlands and Germany respectively we would expect that they would be the same i.e. (1) rNL - rDE = 0 At any instant in time there may be a...

A key decision facing the newly formed European Central Bank will be the specification of a monetary policy strategy for the euro area. This article considers how monetary policy may be conducted within EMU, focusing on the main strategies under consideration. The agreed instruments and...

The European Monetary Institute have narrowed down the choice of candidate strategies for a single monetary policy within European Monetary Union to inflation targets or monetary aggregate targets. In practice it is unlikely to be a simple choice between these targets, since all monetary...