Abstract
The Maastricht way to European Monetary Union is another attempt by the Community to achieve full monetary integration. An earlier approach was the Werner plan as envisaged in 1970 where within a decade the exchange rate would be irreversibly fixed and capital controls be abolished, while an EC central bank system would pursue monetary policy; the fiscal policies would be decided at the EC level by an authority that would be responsible to the European Parliament. Facing two oil price shocks in the 1970s the EC countries gave up their plans to proceed with monetary union for some time. The Maastricht approach to EMU is different and suggests that there will be a common monetary policy, while fiscal policies will remain at the national level. It is constrained by the fiscal convergence criteria.
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Welfens, P.J.J., Jungmittag, A. (1997). Political Economy of EMU and Stabilization Policy. In: Welfens, P.J.J. (eds) European Monetary Union. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-59039-9_9
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DOI: https://doi.org/10.1007/978-3-642-59039-9_9
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