01613cas a2200241 a 4500 AALejournalIMF002181 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451812985 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. Monetary and Exchange Rate Policies of the Euro Area : Selected Issues. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (120 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines monetary and exchange rate policies of the euro area. The paper reviews the European Central Bank's definition of price stability, and examines the factors determining 'the optimal rate of inflation' in the euro area. It reviews the benefits of price stability, including the reduction in the distortions of savings and investment behavior that stem from the interaction between nominal tax systems and inflation. It then goes on to evaluate arguments for maintaining a small positive inflation rate in the context of the euro area. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2002/236 Full text available on IMF http://elibrary.imf.org/view/journals/002/2002/236/002.2002.issue-236-en.xml IMF e-Library