Comment: Divergence and monetary policy

- Central Banking staff
- 19 Sep 2005

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The issue of regional economic divergence continues to attract much attention from policymakers and academics studying the eurozone. The issue is particularly important for the ECB, as it is often mentioned that divergent economic performance across eurozone complicates the formulation of optimal monetary policy responses.

COMMENT BY CENTRALBANKNET

Writing in the latest edition of Central Banking, German academic Henrik Enderlein argues divergence between eurozone economies has the potential to

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