Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36746
Authors: 
Belke, Ansgar
Year of Publication: 
2010
Series/Report no.: 
DIW Discussion Papers 995
Abstract: 
We develop a roadmap of how the ECB should further reduce the volume of money (money supply) and roll back credit easing in order to prevent inflation. The exits should be step-by-step rather than one-off. Communicating about the exit strategy must be an integral part of the exit strategy. Price stability should take precedence in all decisions. Due to vagabonding global liquidity, there is a strong case for globally coordinating monetary exit strategies. Given unsurmountable practical problems of coordinating exit with asymmetric country interests, however, the ECB should go ahead - perhaps joint with some Far Eastern economies. Coordination of monetary and fiscal exit would undermine ECB independence and is also technically out of reach within the euro area.
Subjects: 
Exit strategies
international policy coordination and transmission
open market operations
unorthodox monetary policy
JEL: 
E52
E58
F42
E63
Document Type: 
Working Paper

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