This paper provides a stylized choice-thoretic model to analyze optimal monetary policies among interdependent economies. In response to marcoeconomic shocks, policymakers strike a balance between two objectives. The first is to stabilize marginal costs and markups to offset the distortions...

The enlargement of the EU will eventually lead to an enlargement of the Euroarea. Since the accession countries are economically very small, the implications for the ECB will be limited to its decision-making structure. I argue that the enlargementrepresents an opportunity for the ECB to adjust...

We show that the volatility of a price process, which is usuallyregarded as an impediment to financial growth, can serve as an en-dogenous factor in its acceleration.