§07§This book studies the coexistence of inflation and unemployment in a monetary union. The focus is on how to reduce the associated loss. It further gives a description of processes in a monetary union where different targets are pursued by various institutions. §04§The Rate of Inflation.- Monetary Policy in Europe.- Fiscal Policies in Germany and France.- Central Bank and Governments Decide Sequentially.- Central Bank and Governments Cooperate.- The Countries Differ in Size.- The Countries Differ in Behaviour.- The Monetary Union of Three Countries.- The Rate of Unemployment.- Monetary Policy in Europe.- Fiscal Policies in Germany and France.- Central Bank and Governments Decide Sequentially.- Central Bank and Governments Cooperate.- The Countries Differ in Size.- The Countries Differ in Behaviour.- The Monetary Union of Three Countries.- Inflation and Unemployment.- The Model.- Some Numerical Examples.- Monetary Policy in the Phillips Curve Diagram.- Inflation and Unemployment.- Monetary Policy in Europe.- Fiscal Policies in Germany and France.- Central Bank and Governments Decide Sequentially.- Central Bank and Governments Cooperate.- Central Bank and Governments Differ in Loss Function.
