EU - Subject: The choice of a numeraire for the European Monetary System

Part 1.

 Subject: The choice of a numeraire for the European Monetary System
 5.8.1978

"...1. Although the official communique issued after the meeting of the European Council at Bremen is not entirely explicit on this point, it appears that the choice for the numeraire fonction of the ECU (1) has now been reduced to two options, namely:
a) 8 "parity grid" of the kind currently applied in the snake(2),
b) a "basket of currencies' definition" to be equivalent in its composition
and weighting to the Europen Unit of Account (EUA). 2. There is some presentational advantage in having the same unit performing both the role of numeraire and that of main reserve and settlement instrument in the system." ..."
 
Source: Subject: The choice of a numeraire for the European Monetary System


Part 2.



Subject: Alternative numeraires for exchange rate guidelines
2.5.1978

1.. In setting exchange toste guidel ines (or "target zones") for a currency it is necessary that the guidelines should be defined in relation to some specific point of reference or intervention numeraire.


Source: Subject: Alternative numeraires for exchange rate guidelines



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