The Effects of Economic Convergence and Competitiveness on Trade among the EMS Countries

  • Lorenzo Bini-Smaghi
  • Stefano Vona
Part of the Studies in Banking and International Finance book series (SBIF)


After the completion of the customs union in the early 1970s and the experience of the European Monetary ‘snake’, the European Monetary System (EMS) is the most important step the EEC countries have taken towards their goal of economic and monetary union. It also plays an important role in overall exchange rate stability in a period marked by extremely high volatility.


Exchange Rate Real Exchange Rate Trade Balance Domestic Demand Import Price 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. ARMINGTON, P. S. (1969) ‘A Theory of Demand for Products Distinguished by Place of Production’, IMF Staff Papers, 159–76.Google Scholar
  2. BALASSA, B. (1965) ‘Trade Liberalization and ‘Revealed’ Comparative Advantage’, Manchester School of Economic and Social Studies.Google Scholar
  3. BASEVI, G. and GIAVAZZI, F. (1986) Aspetti Istituzionali del Vincolo Estero. Costi e Benefici della Partecipazione dell’ Italia ad Una Unione Monetaria Europea, mimeo.Google Scholar
  4. BOND, M. (1980) ‘Exchange Rates, Inflation and Vicious Circles’, IMF Staff Papers, 27:679–711.CrossRefGoogle Scholar
  5. BRUNO, M. (1978) ‘Exchange Rates, Import Costs and Wage-Price Dynamics’, Journal of Political Economy, 86:379–403.CrossRefGoogle Scholar
  6. CHAMBERLAIN, E. H. (1933) The Theory of Monopolistic Competition (Cambridge, Mass.: Harvard University Press).Google Scholar
  7. CHIESA, C. and VALCAMONICI, R. (1980) Settore reale e fiscale: una versione con disaggregazione merceologica delle importazioni, Banca d’Italia.Google Scholar
  8. DINI, L. (1984) The EMS Experience and the International Monetary System, presented at the Conference on ‘The International Monetary System and Economic Recovery’, Torino, 30–31 March.Google Scholar
  9. DIXIT, A. and NORMAN, V. (1980) The Theory of International Trade (Cambridge: Cambridge University Press).CrossRefGoogle Scholar
  10. DORNBUSCH, R. (1982) ‘PPP Exchange Rate Rules and Macroeconomic Stability’, Journal of Political Economy, 90:158–65.CrossRefGoogle Scholar
  11. GIAVAZZI, F. (1978) Trade Flows, Relative Prices and the Exchange Rate in the Short-Run, PhD Dissertation, MIT.Google Scholar
  12. GROUP OF TEN (1985) The Functioning of the International Monetary System, A Report to the Ministers and Governors by the Deputies of the Group of Ten.Google Scholar
  13. GROUP OF TWENTY-FOUR (1985) The Functioning and Improvement of the International Monetary System, Report of the Deputies of the Group of 24, August.Google Scholar
  14. HELPMAN, E. (1981) ‘International Trade in the Presence of Product differentiation, Economies of Scale and Monopolistic Competition: A Chamberlin-Heckscher-Ohlin Approach’, Journal of International Economics, 11:305–40.CrossRefGoogle Scholar
  15. HELPMAN, E. (1984) ‘Increasing Returns, Imperfect Markets and Trade Theory’, in Jones, J. and Kenen, P. (eds) Handbook of International Economics, 1:325–66.Google Scholar
  16. KRUGMAN, P. (1979) ‘Increasing Returns, Monopolistic Competition and International Trade’, Journal of International Economics, 9:469–79.CrossRefGoogle Scholar
  17. KRUGMAN, P. (1980) ‘Scale Economies, Product Differentiation, and the Pattern of Trade’, American Economic Review, 70:950–59.Google Scholar
  18. LANCASTER, K. (1979) Variety Equity and Efficiency (New York: Columbia University Press).Google Scholar
  19. LANCASTER, K. (1980) ‘Intra-Industry Trade under Perfect Monopolistic Competition’, Journal of International Economics, 10:151–75.CrossRefGoogle Scholar
  20. MASERA, R. (1980) L’Unificazione Monetaria e lo SME (Bologna: Il Mulino).Google Scholar
  21. MICOSSI, S. (1986) Il Sistema Monetario Europeo, mimeo, Banca d’Italia.Google Scholar
  22. MILONE, L. M. (1986) ‘The Law of One Price: Further Empirical Evidence Concerning Italy and the United Kingdom’, Applied Economics, 18:645–61.CrossRefGoogle Scholar
  23. PADOA-SCHIOPPA, T. (1984) ‘Comments on McKinnon’s: The Case for Internationalizing US Monetary Policy’, presented at the Conference on ‘Euro American Relations and Global Economic Interdependence’, Bruges.Google Scholar
  24. PADOA-SCHIOPPA, T. (1985) ‘Policy Cooperation and the EMS Experience’, in Buiter, W. and Marston, R. (eds) International Policy Cooperation.Google Scholar
  25. RUSSO, M. (1986) Why the Time is Ripe, mimeo (Bruxelles).Google Scholar
  26. SPENCER, G. (1984) ‘The World Trade Model; Revised Estimates’, IMF Staff Papers, 31:469–98.CrossRefGoogle Scholar
  27. SPITALLER, E. (1980) ‘Short Run Effects of Exchange Rate Changes on Terms of Trade and Trade Balance’, IMF Staff Papers, 27:320–48.CrossRefGoogle Scholar
  28. STEVENS, G. et al. (1984) The US Economy in an Interdependent World (Washington: Board of Governors of the Federal Reserve System).Google Scholar
  29. TRIULZI, U. (1985) ‘Risultati e prospettive del Sistema Monetario Europeo’, Rivista di Politica Economica, 131–76.Google Scholar
  30. VALCAMONICI, R. and VONA, S. (1982) ‘Indicatori di competitivita per l’Italia e per i principali paesi industriali: metodologie e criteri di calcolo’, Bollettino Statistico, Banca d’Italia.Google Scholar
  31. VONA, S. (1981) ‘Teorie degli scambi internazionali e commercio orizzontale: alcuni sviluppi recenti’, in Campagni, R. (ed.) Il Commercio Orizzontale, Stato della Teoria e Verifiche Empiriche (Padova: Cleup), 63–93.Google Scholar
  32. VONA, S. (1983) ‘Cambi, competitività di prezzo ed esportazione di manufatti: l’esperienza dei principali paesi industriali (1973–80)’, Ricerche sui Modelli per la Politica Economica, Banca d’Italia, 353–92.Google Scholar
  33. VONA, S. and BINI-SMAGHI, L. (1988) ‘Economic Growth and Exchange Rates in the EMS: Their Trade Effects in a Changing External Environment’ in F. Giavazzi, S. Micossi and M. Miller (eds) The European Monetary System (Cambridge University Press).Google Scholar

Copyright information

© Donald R. Hodgman and Geoffrey E. Wood 1989

Authors and Affiliations

  • Lorenzo Bini-Smaghi
  • Stefano Vona

There are no affiliations available

Personalised recommendations