Minimising Imbalances in Monetary Union

Roland Vaubel

Chapter 5 in One Money for Europe, 1978, pp 109-134 from Palgrave Macmillan

Abstract: Abstract There are so many advantages to the parallel-currency approachl—and so many of them are neglected—that it may seem quite arbitrary to concentrate on only two of them. On the other hand, there is so much to be said about each of them that it may even seem impossible in one paper to do justice to two of them. Nevertheless, this paper tries to establish the following two propositions: i. the parallel-currency approach would minimise, and under certain conditions even avoid, stablilization-induced unemployment in the process of monetary unification; and ii. even before full currency union2, it would permit the formation of dynamic optimum currency domains on a regional (as well as industrial and functional) basis; indeed, it would not lead to full currency union unless the Community as a whole is an optimum currency area in the comparative static sense.

Keywords: European Monetary Union; National Currency; Optimum Currency Area; Wage Contract; Parallel Currency (search for similar items in EconPapers)
Date: 1978
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-04308-8_5

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DOI: 10.1007/978-1-349-04308-8_5

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