In discussing the European Monetary Union, a recent government report

In discussing the European Monetary Union, a recent government report stressed a need to make the central bank accountable to the ''democratic process.'' What are the likely consequences for price stability and exchange rate stability in the EMS if the ECB becomes accountable to the ''democratic process''?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...