The Birth of the Euro

Contents
List of figures vii
List of tables ix
Preface xi
1 The euro in 2008 1
2 Historical background 3
The rocky road to monetary union 3
The decision in Maastricht 9
The convergence process 13
Farewell to the national currencies 20
The countdown begins 25
The euro area 43
3 The ECB and the foundations of monetary policy 52
The Statute 52
The decision-making bodies 66
Preparations for the single monetary policy 76
Monetary policy options 86
The ECB’s stability-oriented monetary policy strategy 131
The instruments of monetary policy 118

4 The ECB – monetary policy for a stable euro 131
Orientations in the ECB Governing Council 131
Assuming responsibility for monetary policy 135
Monetary policy success: a stable euro 141
Monetary policy-making in the ECB Governing Council 146
Transparency, communication, accountability 156
Monetary policy and the exchange rate 169
The euro as an international currency 176
Economic theory and monetary policy practice 184
5 The central bank and monetary policy in the EMU
framework 191
Fiscal and monetary policy in EMU 192
Policy coordination in EMU 200
Does one size fit all? 207
The enlargement of the euro area 219
Monetary union without political union? 227
6 Europe at the crossroads 237
Index 245