Michael Woodford, 08 January 2008

The new strategy is not ‘stealth inflation targeting,’ but it matters for the Fed’s own deliberations. Here the world’s leading monetary theorist argues that forcing FOMC members to look years ahead will move policy towards a coherent strategy, away from a sequence of short-term decisions -- highly desirable since the anticipation of policy matters to its effectiveness.

Willem Buiter, Anne Sibert, 03 May 2006

The Maastricht Treaty’s Eurozone entry criteria were designed for slow-growing West European nations. They make no economic sense for the new EU members. These nations opted for stable exchange rates, so their inflation rates rose with energy prices and rapid productivity growth. Neither the ECB nor the Bank of England would try to control inflation and exchange rates simultaneously. Why should Eurozone aspirants be forced to do so?

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