Moreover, I have argued that for countries with histories of high inflation and political interference in policy formation, a credible monetary policy can be attained by joining a monetary union with an independent central bank. I also mentioned, however, that the earlier literature on optimum currency areas identified a second cost of joining a monetary union – the loss of the exchange-rate instrument.
They have a longer-term investment horizon which makes them less vulnerable to fluctuations on the stock exchange. 2  BIS Review 26/2004  As a subsidiary of a large industrial or financial enterprise, a corporate venture capitalist always maintains close financial and business relations with his holding company.