GMU and GCB – the chicken and the egg
Posted by Ivo Cerckel on September 18th, 2008
Here’s an Emirates Business 24/7 article of 25 August 2008.
GCC monetary union key to setting up a central bank
25 August 2008
http://www.zawya.com/printstory.cfm?storyid=ZAWYA20080825030212&l=030200080825
The first paragraph of the article says:
A Gulf Monetary Union should be a stepping stone to the formation of a Gulf central bank, said Dr Nasser Al Saidi, Chief Economist at the DIFC.
Ivo:
A stepping stone is a means of achievement, says Random House Webster’s dictionary.
GMU is a means of achieving a GCB, says the first paragraph.
The second paragraph of the article says:
“One of the critical steps in the preparation for monetary union is the definition of the institutional and governance structure and design of the Gulf central bank. In this area there has been an intense debate among the GCC authorities, but little has transpired so far. This is the last major hurdle on the road to monetary union,” Dr Al Saidi said.
Ivo;
The second paragraph says that the definition of the institutional and governance structure and design of the GCB is a necessary condition for the preparation of GMU.
The second paragraph thus says that the GCB is a means of achieving GMU.
CONCLUSION
GMU is a means of achieving a GCB, says the first paragraph.
The second paragraph says that the GCB is a means of achieving GMU.
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