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On December 4/5, 1978 the heads of states and governments of the EC-member states are meeting in order to take decisions on the new European Monetary System agreed on at their Bremen summit. The problems of monetary integration in Europe are discussed in this article.
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Following the twin crises of sovereign debt and COVID-19, the ECB risks being stuck in a situation of fiscal dominance, in which monetary policy is subordinated to the needs of finance ministers. A strong post-COVID-19 recovery may increase inflationary pressures, requiring a shift towards a...
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