Monetary union without Germany, or more precisely without the Bundesbank: that’s the prescription of Nobel laureate Franco Modigliani. The Bundesbank has already become the central bank of Europe, Modigliani argues, with its “miserable monetary policy” of high real interests in the face of low investment and rising unemployment. He would like to index central bankers’ salaries to inflation and joblessness figures.
Modigliani, born in Rome in 1918, an MIT professor and winner of the Nobel prize for economics in 1985, hopes Emu will mean a new central bank “whose interests will presumably be those of Europe, not Germany.
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