Monetary policy that is solely or predominantly geared to a specific target, in the case of the ECB practically to the EUR/USD exchange rate. – The ECB rejects such a commitment of its policy because it would limit, if not completely eliminate, the decision-making scope of its internal monetary policy. This is because the central bank would no longer be responsible for preserving the monetary standard, but for constantly pegging its own currency to the value of foreign money. – See adjustment policy, central banking, targeting, single-target, Benin Neglect, inflation targeting, exchange rate targeting, two-pillar principle.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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