Imagine that the EMS had become a monetary union with a single currency but that it created

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Imagine that the EMS had become a monetary union with a single currency but that it created no European Central Bank to manage this currency. Instead, imagine that the task had been left to the various national central banks, each of which was allowed to issue as much of the European currency as it liked and to conduct open-market operations. What problems can you see arising from such a scheme?

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International Economics Theory & Policy

ISBN: 9780138002121

8th Edition

Authors: Paul R Krugman, Maurice Obstfeld

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