The monetary-fiscal policy mix: There was once a great deal of work on the optimal monetary-fiscal policy mix. The topic was interesting and the analysis persuasive.
When Latvia will adopt the euro on 1 January next year, my colleague the governor of the central bank of Latvia will partake fully in the formulation of the ECB’s monetary policy. The same cannot be said of the countries that peg their currencies to the US dollar, some of which are considerably larger.