Cover -- Half-title -- Title -- Copyright -- Contents -- Figures -- Tables -- Acknowledgements -- Introduction -- 1 Money, output and prices: the scope of monetary policy -- 1.1 The long run -- 1.1.1 Money and prices -- 1.1.2 Money and output -- 1.1.3 The costs of inflation -- 1.2 The short run -- 1.2.1 Money, prices and output -- 2 Monetary policy making: strategies and rules -- 2.1 Rules vs.discretion: the importance of credibility -- 2.1.1 Commitment vs.discretion -- 2.1.2 The importance of credibility -- 2.2 Optimal policy -- 2.3 Simple rules as policy benchmarks -- 2.4 Monetary policy strategies -- 3 The euro area: an overview -- 3.1 Salient features of the euro area economy -- 3.2 Euro area data -- 3.2.1 The harmonised index of consumer prices -- 3.2.2 The new monetary aggregates -- 3.3 Some tentative evidence on the monetary transmission mechanism in the euro area -- 3.3.1 The monetary policy transmission mechanism -- 3.3.2 A few pieces of quantitative evidence -- 4 The ECB strategy: defining price stability -- 4.1 The mandate of the Treaty -- 4.2 The ECB's definition of price stability -- 4.3 Other aspects of the definition of price stability -- 5 The role of money -- 5.1 What do the literature and policy experiences tell us? -- 5.2 Two implications for the ECB strategy -- 5.3 From principles to practice: money in the ECB strategy -- 5.3.1 A 'prominent role' for money -- 5.3.2 Some technical issues -- 5.4 Money demand models for the euro area -- 6 A broadly based assessment -- 6.1 Leading indicators -- 6.2 Expectations and forecasts -- 7 The ECB strategy: an overall view -- 7.1 The role of uncertainty in the strategy: general aspects -- 7.2 Euro area-specific aspects -- 7.3 A new strategy -- 7.4 Two pillars, a single framework -- 7.5 Recent criticisms and some answers -- 8 The operational framework.

8.1 Outline of the Eurosystem's operational framework -- 8.1.1 Open market operations -- 8.1.2 Standing facilities -- 8.1.3 Minimum reserve requirement -- 8.2 How does the framework fulfil its main goals? -- 8.3 Counterparties and eligible collateral -- 8.4 The performance of the operational framework in 1999 -- 9 Accountability and transparency -- 9.1 Accountability and independence -- 9.1.1 Accountable for what? -- 9.1.2 Accountable to whom? -- 9.1.3 Accountable when? -- 9.2 Transparency -- 9.2.1 Publication of the internal inflation forecast -- 9.3 Accountability and transparency of the ECB -- 9.3.1 Accountability -- 9.3.2 Transparency -- 10 The single monetary policy in 1999 -- 10.1 The announcement of the strategy -- 10.2 The first monetary policy actions: 3 December 1998 and 22 December 1998 -- 10.3 Second policy move: 8 April 1999 -- 10.3.1 Monetary developments -- 10.3.2 The broadly based assessment -- 10.3.3 Overall assessment -- 10.4 The first policy tightening: 4 November 1999 -- 10.4.1 The evolution of the prospects for price stability -- 10.4.2 Overall assessment -- Appendix: Excerpts from ECB external communications to the press -- ECB PRESS RELEASE -- ECB PRESS RELEASE -- ECB PRESS RELEASE -- ECB PRESS CONFERENCE -- ECB PRESS CONFERENCE -- OTHER BUSINESS -- ECB PRESS RELEASE -- References -- Index.