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Economic Commentary

A European System of Central Banks: Observations from Abroad

In an effort to enhance the economic advantages of a single market, the European Economic Community is considering monetary union. A European System of Central Banks would be structured after the German Bundesbank model and vested with the power to conduct a single monetary policy and perhaps issue a common currency. In a recent speech to a group of German bankers and business representatives, Cleveland Federal Reserve Bank President W. Lee Hoskins argued that price stability must be the sole objective of a central bank, and pointed out some pitfalls that the Community must avoid if monetary union is to be successful.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Hoskins, W. Lee. 1990. “A European System of Central Banks: Observations from Abroad.” Federal Reserve Bank of Cleveland, Economic Commentary 11/11/1990.