This book has been a study in the economic theory of currency areas, applied where relevant to the case-study of the European Economic Community. It has been of a special nature because of its analysis of the EEC in the light of currency area theory, with only passing reference to whether ‘optimality’ — in the strict economic sense described above — could be more nearly approached by expanding or reducing the membership of the Community. The study has made only limited reference to the non-economic, political and social arguments within the EEC, except to appraise why EMU is a priority for some members of the EEC. This concentration on economic theory and its empirical verification does not reduce its applicability to the arguments often quoted for and against EMU. It is an attempt to evaluate the conditions for a successful (i.e. where positive net benefits accrue), even if not an optimal, currency area in the EEC. It leaves the social and political arguments and decisions to those more capable of concluding on them.
KeywordsMonetary Policy Monetary Union Currency Area European Economic Community Factor Mobility
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