This report, which was prepared with the assistance of the EMI’s Monetary Policy Sub-Committee, discusses issues related to the choice of a monetary policy strategy for the ESCB in the third stage of Monetary Union. The decision on the strategy for Stage 3 will have to be taken by the ESCB, in line with its independent status, on the basis of the economic environment and financial market structure prevailing in the euro area. Nevertheless, the EMI has an important role to play in preparing this decision by analysing possible strategies for the ESCB and by ensuring that the technical infrastructure needed for the efficient pursuit of monetary policy strategies is available as from the start of Stage 3.
Executive summary of the single monetary policy in Stage 3