Of Sticks and Carrots. Incentives and the Maastricht Road to EMU

B Winkler

Economics Working Papers from European University Institute

Abstract: This paper interprets the Maastricht convergence criteria as an incentive mechanism that offers entry into European Monetary Union (EMU) as an uncertain reward for candidate countries' convergence efforts. Similarly, under the "stability pact" agreed at the Dublin summit in December 1996 countries risk penalties for insufficient discipline inside EMU. The paper suggests a partial trade-off between the entry conditions and the stability pact.

Keywords: EUROPE; INTERNATIONAL AGREEMENTS (search for similar items in EconPapers)
JEL-codes: F33 (search for similar items in EconPapers)
Pages: 27 pages
Date: 1997
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eui:euiwps:eco97/02

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