Abstracts » Business, international

The ECB heads for turbulence

Article Abstract:

The European Central Bank (ECB) is likely to be affected by the enlargement of the European Union (EU), and negotiations are starting with six new applicants with possible membership by 2003-2004. There is concern that new members could seek to join monetary union at a time when they need flexibility in their economic policies, and that the ECB could find that its control of euros is loosened. There are also questions about the ECB's institutional structure that enlargement will raise.

Membership, European Union

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A parting of ways

Article Abstract:

The European Central Bank (ECB) has the task of setting interest rates for countries involved in European monetary union, and this is difficult when there are differences between growth rates. Germany has been affected by the economic problems of Asia and Russia, and the French economy is growing more rapidly. There is a case for a cut in rates for the region as a whole, but this could lead to problems for Spain and Ireland where there is overheating. Economic growth could rise as a result of a weak euro. The ECB wants to see labor market deregulation in Germany.

Economic aspects, Western Europe, Monetary unions

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Give growth a chance

Article Abstract:

There is a need for central banks to seek to prevent inflation, but the European Central Bank (ECB) does not need to do so. It is unlikely that inflation in the future will cause problems in Europe since there is a great deal of economic slack. European monetarists may be concerned about the rate of increase of the money supply, but this is not a reliable guide to future inflation. There is a need to allow Europe to experience economic growth, so keep interest rates stable.

Interest Rates, Editorial, Europe

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