2012Unpublished venueOpen access

The reputation of a newborn central bank

Zeno Rotondi, Giacomo Vaciago

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Abstract

Most of the problems that the European Central Bank has encountered are due to the slow progress made in improving the quality of the monetary union. The increasing variance of the inflationary process among the 12 countries, especially at the extremes of income level distribution – between Germany and Portugal, say – has meant that the common monetary policy is not yet the best possible. The quest for an optimum currency area continues. JEL Codes: E52, E58, F36, E52, E58, F36

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What this paper is about

Most of the problems that the European Central Bank has encountered are due to the slow progress made in improving the quality of the monetary union. The increasing variance of the inflationary process among the 12 countries, especially at the extremes of income level distribution – between Germany and Portugal, say – has meant that the common monetary policy is not yet the best possible. The quest for an optimum currency area continues. JEL Codes: E52, E58, F36, E52, E58, F36

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Available abstract

Most of the problems that the European Central Bank has encountered are due to the slow progress made in improving the quality of the monetary union. The increasing variance of the inflationary process among the 12 countries, especially at the extremes of income level distribution – between Germany and Portugal, say – has meant that the common monetary policy is not yet the best possible. The quest for an optimum currency area continues. JEL Codes: E52, E58, F36, E52, E58, F36

Key concepts: Reputation, Central bank, Business, Financial system, Economics, Political science, Monetary economics, Law

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