WASHINGTON - Federal Reserve Board Governor Wayne Angell said he hopes the recent turmoil in the European currency markets does not derail the countries' commitment to price stability.
Mr. Angell, in a speech to the American Committee on Asian Economic Studies in Atlanta, said members of the European Monetary System have benefited from low-inflation policies.
"Hopefully, the disruption of the system does not indicate the abandonment of the goal of price level stability but only the need on the part of some countries for more flexibility," Mr. Angell said in his speech, a text of which was released in Washington.
Monetary Union Foreseen
The disarray in European currency markets also dealt a setback to the move toward monetary union, but Mr. Angell said he was confident it would occur.
"I hope the pins Europe has made in stabilizing prices can be consolidated and furthered in whatever system prevails," he added.
Mr. Angell said a successful European system could set the stage for a "tripolar" monetary system centered on three currency blocs - the dollar, the European currency unit, and Japanese yen.
While complete monetary union remains a possibility in Europe, Mr. Angell discounted the chance of a similar union in North America or the Pacific Basin.
"The possibility of an Asian-Pacific monetary union with the yen at its center appears to be even more remote" than a North American system, which is not being discussed seriously, he said.
