Chapter 17 - Assignment 2: A Common Monetary Policy for the EC

Read the European Parliament's document entitled: " The European System of Central Banks" and the European Community's discussion of " The Stability and Growth Pact."

  1. Explain why monetary policies must be coordinated for a common currency to exist.
  2. Discuss the structure of the Central Bank System during Stage II of the transition to the Euro.
  3. How will monetary policy be conducted under the "single monetary policy?"
  4. Why is there a need to limit the size of government deficits?
  5. Why might there be a need for sanctions?
[ Chapter 17 | Feedback ]
Copyright Houghton Mifflin Company. All Rights Reserved.
Terms and Conditions of Use and Trademark Information