The paper presents the development of the role of the ECU in the financial markets. The ECU is the only currency basket to have developed as a currency. It has gained popularity for several reasons. In the early 1980s, the most important reason was that it offered a simple, easy and inexpensive...

International money is used as a medium of exchange, as a unit of account, and as a store of value.These roles can be performed either in the private or in the public sector of the economy.In order to be considered in the decision making of international agents, the currency must fulfil some...

This study is concerned with the determinants of monetary policy in the ERM countries.We derive a monetary policy rule, an interest rate rule, from a minimization problem faced by the central bank. The loss fuction trades off costs of interest rate instability against benefits from successful...

The study deals with the international transmission of economic shocks, their consequences for exchange rates and the reconciliation of exchange rate management with monetary policy. The theoretical part of the study consists of a mainstream model of two large, interdependent economies with...