EMU: OECD ARGUES FOR MONETARY POLICY FOCUSED ON CONTROLLING INFLATION.
In this situation, the OECD Ministers felt that, " any easing in fiscal policy in Euro countries should be avoided and unanticipated higher revenues should be used to lower public debt". They said "countries where tax burdens are high, tax reductions should be directed at enhancing supply capacity and accompanied by cuts in spending, thus preventing deterioration in underlying fiscal positions". The OECD feels that the objective should be to secure long-term expansion of the Euro zone by carrying out structural reforms to help " assist European economies to move onto a path of higher sustained growth, by raising productivity and employment and by deriving greater benefits from innovation and the potential offered by new technologies".ECB.The Chief Economist of the European Central Bank (ECB), Otmar Issing, announced on 26 June that he saw no need to alter the ECB's communications policy or the instruments it used to define monetary policy. He did recognise the existence of a "communications problem", but stressed that it often resulted from over-intense pressure from the media and the general public over the single...
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