Similarly, it is also crucial to avoid a renewed round of competitive depreciation. In the long run, nobody would benefit, but everyone would suffer. The exchange rate policy has to be credible and in line with the development of the fundamentals. V On January 1, 1999, for eleven countries of the European Union, the single European currency will become a reality.
For discussions of the macroeconomic effects of these policy actions, see Chen, Cúrdia, and Ferrero (2012); Baumeister and Benati (2013); Engen, Laubach, and Reifschneider (2015); Chung and others (2019), and the references therein. For related assessments of  - 10 In addition to assessing the efficacy of these existing tools, we will examine additional tools to ease policy when the ELB is binding.