Paul-Jacques Lehmann, Emeritus Professor of Economics at the University of Rouen, is the author of numerous theoretical, practical and historical works in monetary and financial fields.

• Preface ixIntroduction xiChapter 1 The Monetary Steps that Preceded the Introduction of the Euro 11.1 The lack of a sustainable international monetary system 11.1.1 From the gold standard to the gold exchange standard system 21.1.2 The Bretton Woods international monetary system 31.1.3 The International Monetary Fund (IMF), guarantor of the Bretton Woods Agreements 41.1.4 The end of convertibility of the dollar and the instability of floating exchange rates 51.2 From the Treaty of Rome to the Maastricht Treaty 81.2.1 The lack of a monetary target at the beginning of the European Economic Community 81.2.2 The Werner Plan and the temporary failure to establish an Economic and Monetary Union 101.2.3 The Single European Act and the Delors Report 141.2.4 The Maastricht Treaty 181.3 Monetary experiences prior to the euro 191.3.1 The snake in the tunnel 201.3.2 The European Monetary System (EMS) 221.3.3 The European Monetary Cooperation Fund (EMCF) 251.3.4 The European Monetary Institute (EMI) 26Chapter 2 The Monetary Policy Decisions Facing the European Monetary Institute 332.1 The central bank, Bank of Banks 352.1.1 The original function of the lender of last resort 352.1.2 The modern function of lender of last resort 372.1.3 Controversy over the choice of body to control banking risks 392.1.4 The limitations of the lender of last resort 412.2 The central bank, a body responsible for monetary policy 442.2.1 Conditions for implementing monetary policy 452.2.2 The main objective of the fight against inflation 472.2.3 Methods for achieving the objective of maintaining price stability 492.2.4 Monetary policy tools 502.3 The independence of the central bank 532.3.1 Institutional independence 542.3.2 Effective independence 57Chapter 3 Monetary Policy Conducted by the European Central Bank 613.1 The monetary policy in force when the euro was introduced 623.1.1 The bodies responsible for European monetary policy 633.1.2 Organization of payment and prudential control systems 673.1.3 The choice of monetary policy objective 693.1.4 Monetary policy tools 723.1.5 Independence of the European Central Bank 753.2 Developments in conventional monetary policy between 1999 and 2007 773.2.1 Bank liquidity factors 773.2.2 Interest rates 833.2.3 Refinancing tools 873.3 Non-conventional monetary policy since 2008 943.3.1 The evolution of liquidity needs 953.3.2 Interest rates that gradually became zero and even became negative 973.3.3 Refinancing operations 102Chapter 4 Consequences of the European Central Bank’s Monetary Policy 1174.1 Monetary consequences 1184.1.1 About the balance sheet of the European Central Bank 1184.1.2 On the monetary aspects of the euro zone 1254.1.3 Improvements in banking and financial prudential supervision 1304.2 Economic consequences 1334.2.1 An increase in fluctuating price 1344.2.2 Limited growth and an unemployment that is difficult to combat 1364.2.3 A heavily deteriorated fiscal situation and public debt 138Conclusion 145References 151Index 153