... illustrate the subject in hand. The monetary union is an open economy with high capital mobility. The exchange rate between the monetary union and the rest of the world is flexible. The world interest ... Uncertain World, in: M. Buti, ed., Monetary and Fiscal Policy in EMU, Cambridge 2003 LAWLER, P., Monetary Policy and Asymmetrical Fiscal Policy in a Jointly Floating Currency Area, in: Scottish ... For instance, what determines the rate of consumer inflation in Europe, and what in America? Moreover, what determines the rate of consumer inflation in Germany, and what in France? Further...