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Eurozone

Challenges for central banks in an enlarged EMU

A new book analyses the challenges that lie in front of the EU as it used to be, the hurdles that have to be cleared by possible candidates, and the impact of these developments on important economic sectors like the financial markets.

Strong demand for euronotes

The euro has received a good deal of flak recently, but in cash terms it seems people can't get enough of Europe's single currency as the value of euro banknotes in circulation soared past €500 billion in the second quarter of 2005.

What remains of the SGP?

Franz-Christoph Zeitler, a member of the executive board of Deutsche Bundesbank, delivered a speech at the Salzburg seminar, a high-profile meeting place of international leaders, at which raised the question "What remains of the Stability and Growth…

Comment: The Benefits of Joining the EMU

What is the gain for new European Union member states of joining the Euro currency area so soon? This is the question asked by Federico Ravenna in a recent ECB working paper*. The author argues that the decision to become part of the monetary union is…

Comment: A controversial Central Banking feature

About two weeks after its publication, the current issue of Central Banking has suddenly been receiving wall-to-wall coverage in some sections of the UK media. But what was intended as a sober, objective and balanced appraisal of some of the problems of…

Interview with ECB's Issing

In an interview published on Tuesday 9 August, ECB Chief Economist Otmar Issing said that recently the eurozone economy has seen a series of positive signals. However risks to the outlook remained on the downside, he said, particularly with the continued…

ECB Monthly Bulletin, August 2005

The European Central Bank published its August 2005 Monthly Bulletin on Thursday 11 August. The euro zone economy is on track for gradual expansion without pressing inflationary problems, the report said.

Shadow on the Euro

An article published this week notes that five months after central banks talked of increasing their euro reserves at the expense of the dollar, the speculation now is about how long the euro will last. With its credibility in danger the article asks…

IMF letter on prospects for ECB rate cut

In a letter published by the Financial Times on Tuesday 9 August, Michael Deppler of the IMF said international developments suggest that the worst may be over on growth in the eurozone but point to further upward pressure on headline inflation because…

The future of EMU: one size fits none?

According to the forthcoming edition of Central Banking, inflation and output gap differentials have grown between European states since the inception of the EMU in 1999. If these continue to worsen, the resulting tensions would put a big strain on…

The Maastricht inflation criterion

According to the ECB Working Paper "The Maastricht inflation criterion: How unpleasant is purgatory?" the Maastricht inflation criterion, designed in the early 1990s to bring "high-inflation" EU countries in line with "low-inflation" countries prior to…

Trichet's statement to EP on ECB's Annual Report

In a statement to the European Parliament on the ECB's Annual Report 2003 on Monday 25 October, Jean-Claude Trichet said the eurozone economy was likely to continue growing at its current pace, but noted that high oil prices could dampen the speed of the…

Eurozone recovery at risk, says IMF

The eurozone's recovery remains fragile and is vulnerable to weak consumer demand and the risk of a further rise in the already strong euro, the International Monetary Fund warned the single currency's member states on Tuesday.

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