By Peter Coffey (auth.), Peter Coffey (eds.)
Peter Coffey, a British nationwide used to be until eventually lately, Head of the Economics part on the Europa Instituut, collage of Amsterdam. shortly he's Holder of the lately created U.S. West Chair on the Graduate tuition on the collage of St. Thomas, Minnesota, united states. He has released many works on eu and overseas financial and financial difficulties. Professor Coffey, who speaks seven languages, has lectured in so much international locations of the EC, in addition to in lots of different elements of the world.
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This committee, with its broad powers, will be composed of34 members, two from each Member State (representing the national central banks and the treasuries), two representatives of the ECB and two senior members of the European Commission. 7. ) 8. This question has been examined in depth by, A. Hughes-Hallet and Andrew Scott in their work, "the Fiscal Dilemmas of the Mon etary Union," in P. Coffey, "The Main Economic Policy Areas ofthe ECafter 1992," Kluwer Academic Publishers, Dordrecht and Boston, 1993.
It is only the 1st July, 2002 that the euro will become the sole legal tender among the participating EU Member States. As discussed earlier in this chapter, the very grave missing link in the system is the lack of automatic fiscal stabilisers. Also, in order to maintain the EURO's international value at an acceptable level, the ECB may, on occasions, be forced to raise interest rates. This could have negative effects on employment levels inside the EU. Equally, the problem of the relative lack of labour mobility inside the EU had still not been resolved.
Equally, the question of price stability and the control of inflation is ofthe same importance. Most recently, Andre Sapir5 has concluded that the future ECB will meet these conditions. Whilst the author would agree with this assessment, he nevertheless finds the division of powers between the different bodies to be somewhat confusing. Thus, in the Maastricht Treaty, the future ECB shall have the following tasks and responsibilities. " However, interestingly enough, both the ECB and the national central banks share the right to issue these notes.