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Monetary Targeting in the EMU: Lessons from the United States

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  2. Economics, Finance, Business & Management
  3. Credit and Capital Markets – Kredit und Kapital
  4. Vol. 30, Issue 3
  5. pp. 348–368

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Arnold, I. Monetary Targeting in the EMU: Lessons from the United States. Credit and Capital Markets – Kredit und Kapital, 30(3), 348-368. https://doi.org/10.3790/ccm.30.3.348
Arnold, Ivo J. M. "Monetary Targeting in the EMU: Lessons from the United States" Credit and Capital Markets – Kredit und Kapital 30.3, 1997, 348-368. https://doi.org/10.3790/ccm.30.3.348
Arnold, Ivo J. M. (1997): Monetary Targeting in the EMU: Lessons from the United States, in: Credit and Capital Markets – Kredit und Kapital, vol. 30, iss. 3, 348-368, [online] https://doi.org/10.3790/ccm.30.3.348
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Monetary Targeting in the EMU: Lessons from the United States

Arnold, Ivo J. M.

Credit and Capital Markets – Kredit und Kapital, Vol. 30 (1997), Iss. 3 : pp. 348–368

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/ccm.30.3.348
Language
Multiple languages
Pages
21

Author Details

Ivo J. M. Arnold, Breukelen

Cited By

  1. Analyse dynamique de la convergence des comportements de demande de monnaie en Europe*

    Lecarpentier-Moyal, Sylvie

    Renou-Maissant, Patricia

    L'Actualité économique, Vol. 83 (2008), Iss. 3 P.321

    https://doi.org/10.7202/018113ar [Citations: 1]

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Abstract

Monetary Targeting in the EMU: Lessons from the United States

The economic arguments in favour of monetary targeting at the start of the stage three of EMU are based on the presumed stability of European money demand and the effect of monetary targets on the credibility of central banks. Regional data from the United States show monetary aggregates to move closely together inside a monetary union. In contrast, the stability of constructed European monetary aggregates is caused by a lack of comovement between monetary aggregates in European countries. This comparison suggests that presently available European money demand studies may overestimate money demand stability in the future EMU by more than 30%. The paper therefore cautions against extrapolating empirical findings on European money demand stability to stage three. Given the uncertainties surrounding European money demand, the case for implementing monetary targeting right at the start of EMU rests solely on the presumed credibility effect of announcing targets for money supply growth.

Table of Contents

Section Title Page Action Price
Ivo J. M. Arnold: Monetary Targeting in the EMU:\rLessons from the United States 348
I. Introduction 348
II. The Stability of European Money Demand 351
III. Lessons from the U.S. experience 353
IV. Conclusions 364
References 366
Summary: Monetary Targeting in the EMU: Lessons from the United States 367
Zusammenfassung: Geldmengensteuerung in der EWU: Lehren aus den Vereinigten Staaten 368
Résumé: Objectifs monétaires de l'UEM: leçons des Etats Unis 368

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