Abstract
The present European Monetary System is far from being the best one possible, and it is in the interest of the Europeans to change it. But two avenues only are possible for that. One could take the existing reality as a point of departure — that is, the European Monetary System set up by the governments — and try to attenuate or abolish its most obvious defects. Or one could try to create an entirely different system which corresponds more closely to the optimal criteria.
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References
See, for example, the works of Buchanan, Tullock, Niskanen, Olson, Breton or Hayek.
This is confirmed by R. Vaubel, who has cakculaqted that, between 1969 and 1977, the average rate of inflation in Europe was higher when the gaps between the rates of growth of the various money supplies were narrower, i.e., when monetary policies were coordinated by means of interventions on the exchange markets. (R. Vaubel, ‘The Money Supplies in Europe; Why E.M.S. May Make Inflation Worse,’ Euromoney, December 1978, pp. 139–142 )
F.A. Hayek has recently advocated this approach in Choice in Currency; A Way to Stop Inflation, Institute of Economics Affairs, Occasional Papers, no 48, London, 1976.
See, for example, ‘The All Saints’ Day Manifesto for European Monetary Union,’ The Economist, November 1, 1975 (a manifesto signrd b y nine European economist: G. Basevi, M. Fratianni, H. Giersch, P. Kortweg, D. O’Mahony, M. Parkin, T. Peeters, P. Salin and N. Thygesen); the OPTICA 75 report ‘Toward Economic Equilibrium and Monetary Unification in European Communities (II/909/75-F) by G. Basevi, E.M. Claasen, P. Salin and N. Thygesen; and the OPTICA 76 report, previously cited. A plan for a parallel indexed currency to be created by banks was presented by J. Riboud in Une monnaie pou l’Europe, Editions de la RPP, Paris, 1975
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© 1984 Martinus Nijhoff Publishers, The Hague, Boston, Lancaster
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Salin, P. (1984). Towards a better European Monetary System. In: Salin, P. (eds) Currency Competition and Monetary Union. Financial and Monetary Policy Studies, vol 8. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-6077-0_11
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DOI: https://doi.org/10.1007/978-94-009-6077-0_11
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