Using information from a variety of sources, this paper suggests that the exchange rate will play an important role in the transmission of the impact of monetary policy on the real economy and inflation in the euro area. As a first approximation it would be reasonable to assume that an increase...

The European Central Bank will soon have to decide on her monetary strategy. This paper discusses properties of money demand functions and implications for monetary policy in a monetary targeting regime. Special attention is paid to different concepts of stability of money demand, to the length...

The paper explores the inter-relationship between payment system arrangements and the conduct of the single monetary policy in Stage Three of EMU against the background of TARGET--the project drafted by the European Monetary Institute with the aim of creating an EU-wide payment system through...