FRANKFURT, Germany (AP) _ Horst Schulmann, a member of the policy-setting council of the German central bank, has died after a battle with lung cancer. He was 61.

Schulmann died Thursday night, his office said.

He served as deputy managing director and later managing director of the Institute of International Finance in Washington from 1984 until 1992, when he became chairman of Bundesbank in the German state of Hesse, one of nine regional divisions in the central bank.

Born and raised in Frankfurt, Schulmann worked as an monetary advisor to chancellor Helmut Schmidt between 1978 and 1980. He helped create a mechanism to limit exchange rate fluctuations in Europe and to integrate the economies of Europe.

Known for his pro-European views, he also served as chairman of the European Community's currency committee.

Schulmann is survived by his wife Ulrike and children Daniel and Anja.