“Above all we want the European Central Bank to be committed to a stable currency policy. Whether that is achieved using M3 as the main yardstick or via an inflationary target is more a question of implementation. Even the Bundesbank has gone through different trends. Finding the best way to reach these targets requires agility and flexibility.”
He acknowledges that a de facto single monetary policy stance might have to begin even before the official start of Emu at the beginning in 1999: “There are many indications that it won’t be possible to leave the decision on conversion rates until the end of 1998, even though the [Maastricht] Treaty allows this.
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