EMU: Why and How It Might Happen

Charles Wyplosz

No 1685, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper reviews the history, economic rationale and main components of the project of establishing a monetary union in Europe by 1999. The adoption of a single currency is shown to be the best available option following the liberalization of capital movements. Much of the institutional design (central bank independence and objectives, fiscal restraints) reflects Germany’s fears of inflation as it is asked to give up its currency. The fiscal restraints are excessive, however, and a source of contractionary bias. The paper also presents the timetable of the final countdown.

Keywords: Capital Mobility; Convergence; Europe; Fiscal Restraints; Monetary Union (search for similar items in EconPapers)
JEL-codes: E58 E61 F36 F41 (search for similar items in EconPapers)
Date: 1997-08
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Citations: View citations in EconPapers (75)

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Journal Article: EMU: Why and How It Might Happen (1997)
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