The paper evaluates two challenges for monetary policy in the euro area. The first is whether the ECB policy strategy has been adequately motivated and communicated. Several shortcomings in the communication of the ECB policy decisions since October 2008 are presented and analyzed. The second challenge concerns the future enlargement of the euro area. It is argued that simple fulfilment of the convergence criteria does not provide an appropriate metric for the appropriateness and desirability of euro adhesion. More stringent criteria regarding the process of real convergence towards the euro area should be adopted.
R. Rovelli (2011). Two Suggestions for the Future of the Eurozone. CESIFO FORUM, 12(2), 55-62.
Two Suggestions for the Future of the Eurozone
ROVELLI, RICCARDO
2011
Abstract
The paper evaluates two challenges for monetary policy in the euro area. The first is whether the ECB policy strategy has been adequately motivated and communicated. Several shortcomings in the communication of the ECB policy decisions since October 2008 are presented and analyzed. The second challenge concerns the future enlargement of the euro area. It is argued that simple fulfilment of the convergence criteria does not provide an appropriate metric for the appropriateness and desirability of euro adhesion. More stringent criteria regarding the process of real convergence towards the euro area should be adopted.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
