Economic integration and monetary union in Europe or the importance of being earnest: A target-zone approach

Enrique Alberola

Working Papers. Serie EC from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: This decade contemplates the completion of the process which will lead to the Economic and Monetary Union by the end of the century. This paper suggests that targetzone models could be an appropiate framework for the study of this process. Upon a basic model, two central elements in the integration process, capital controls and credibility are built in and their relationships studied with the help of a little self-made computer programme. The conclusion stresses that, after the process of financial integration has been fulfilled, only convergence can guarantee the success of EMU. La terminación del proceso que llevará a la Unión Monetaria y Europea tendrá lugar a finales de este siglo. En este trabajo se propone utilizar los modelos de zonas objetivo como el marco apropiado para el estudio de este proceso. Se incorporan al modelo básico dos elementos centrales del proceso de integración, controles de capital y credibilidad, y se estudian sus relaciones con la ayuda de un programa informático. La conclusión es que, después de que se haya cumplido el proceso de integración financiera, sólo la convergencia podrá garantizar el éxito de la UME.

Pages: 50 pages
Date: 1992-12
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http://www.ivie.es/downloads/docs/wpasec/wpasec-1992-14.pdf Fisrt version / Primera version, 1992 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasec:1992-14

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