Advertisement

The European Monetary System and European Monetary Union

  • Keith Pilbeam
Chapter
Part of the Macmillan Texts in Economics book series (TE)

Abstract

In this chapter we examine one of the most important economic issues ever tackled by the European Union (EU), namely, European Monetary Union (EMU). In January 1994 the European Union was expanded from 12 to 15 members following the accession of Austria, Finland and Sweden. The EU countries have a commitment to free trade between each other as well as permitting free movement of labour and capital between member states, and in addition they have a common trade policy vis-à-vis the rest of the world. By 1992 the member states had created a so-called ‘single market’ by tackling non-tariff barriers. The increasing integration of the member states’ Economics into a single market inevitably raised the issue of whether this market should be served by a single currency.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Selected Further Readings

  1. Artis, M.J. and Taylor, M.P. (1988) ‘Exchange Rates, Interest Rates, Capital Controls and the European Monetary System: Assessing the Track Record’, in F. Giavazzi, S. Micossi and M. Miller (eds), The European Monetary System (Cambridge: Cambridge University Press).Google Scholar
  2. Artis, M.J. and Taylor, M.P. (1994) ‘The Stabilising Effect of the ERM on Exchange Rates and Interest Rates’, IMF Staff Papers, vol. 41, no. 1, pp. 123–48.CrossRefGoogle Scholar
  3. Canzoneri, M. B. and Rogers, C.A. (1990) ‘Is the European Community an Optimal Currency Area? Optimal Taxation Versus the Cost of Multiple Currencies’, American Economic Review, vol. 80, pp. 419–33.Google Scholar
  4. Cheung, Y., Fung, H., Lain, K. and Lo, W. (1995) ‘Purchasing Power Parity Under the European Monetary System’, Journal of International Money and Finance, vol. 14, no. 2, pp. 179–89.CrossRefGoogle Scholar
  5. Cohen, D. and Wyplosz, C. (1989) ‘The European Monetary Union: an Agnostic Evaluation’, in R. C. Bryant, D. A. Currie, J. A. Frenkel, P. R. Masson and R. Portes (eds), Macroeconomic Policies in an Interdependent World (Washington: IMF).Google Scholar
  6. Collins, S. (1988) ‘Inflation and the European Monetary System’, in F. Giavazzi, S. Micossi and M. Miller (eds), The European Monetary System (Cambridge: Cambridge University Press).Google Scholar
  7. De Grauwe, P. ‘The Economics of Convergence to EMU’, Weltwirtschaftliches Archiv, vol. 132, pp. 1–27.Google Scholar
  8. Emerson, M. (1990) ‘The Economics of EMU’, in Britain and EMU, Centre for Economic Performance, London School of Economis, London.Google Scholar
  9. European Banking Federation (1995) ‘survey on the Introduction of the Single European Currency: a First Contribution’.Google Scholar
  10. Giavazzi, F. (1989) ‘The Exchange Rate Question in Europe’, in R. C. Bryant, D. A. Currie, J. A. Frenkel, P. R. Masson and R. Portes (eds), Macroeconomic Policies in an Interdependent World (Washington: IMF).Google Scholar
  11. Giavazzi, F. and Giovannini, A. (1988) ‘The Role of the Exchange Rate Regime in a Disinflation: Empirical Evidence on the European Monetary System’, in F. Giavazzi, S. Micossi and M. Miller (eds), The European Monetary System (Cambridge: Cambridge University Press).CrossRefGoogle Scholar
  12. Giavazzi, F. and Pagano, M. (1988) ‘The Advantage of Tying One’s Hands: EMS Discipline and Central Bank Credibility’, European Economic Review, vol. 32, pp. 1055–75.CrossRefGoogle Scholar
  13. Hu, Y.S. (1981) Europe Under Stress: Convergence and Divergence in the European Community (Kent: Butterworth).Google Scholar
  14. Lucas, R. E. Jnr. (1976) ‘Econometric Policy Evaluations: a Critique’, in K. Brunner and A. H. Meltzer (eds), The Phillips Curve and Labour Markets, Carnegie-Rochester Conference Series on Public Policy no. 1 (Amsterdam: North-Holland) pp. 19–46.Google Scholar
  15. Mastropasqua, C., Micossi, S. and Rinaldi, R. (1988) ‘Interventions Sterilization and Monetary Policy in the European Monetary System Countries 1979–87’, in F. Giavazzi, S. Micossi and M. Miller (eds), The European Monetary System (Cambridge: Cambridge University Press).Google Scholar
  16. Melitz, J. A. (1988) ‘Monetary Discipline and Cooperation in the European Monetary Syste: A Synthesis’, in F. Giavazzi, S. Micossi and M. Miller (eds), The European Monetary System (Cambridge: Cambridge University Press).Google Scholar
  17. Padoa Schioppa, T. (1985) ‘Policy Cooperation and the EMS Experience’, in W. H. Buiter and R. C. Marston (eds), International Economic Policy Coordination (Cambridge: Cambridge University Press).Google Scholar
  18. Torres, F. (ed.) (1996) Monetary Reform in Europe (Lisbon: Universidade Catolica Editora).Google Scholar
  19. Urenger, H., Evans, O., Mayer, T. and Young, P. (1986) ‘The European Monetary System: Recent Developments’, IMF Occasional Papers, no. 48, Washington.Google Scholar
  20. Weber, A. (1971) ‘EMS Credibility’, Economic Policy, vol. 12, pp. 58–102.Google Scholar

Copyright information

© Keith Pilbeam 1998

Authors and Affiliations

  • Keith Pilbeam
    • 1
  1. 1.City UniversityLondonUK

Personalised recommendations