Transition Issues for the European Monetary Union

Willem Buiter and Anne Sibert

No 6292, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: If Stage Three of EMU starts on January 1, 1999, transition issues remain on two time scales. Until July 1, 2002, national currencies and the euro co-exist as legal tender. We argue that intra-EMU currency risk exists in principle during that period, but that no EMU member can be forced out through speculative attacks. Cohabitation of Ins and Outs has an open-ended time scale. We discuss the effect of EMU on incentives for both Ins and Outs to undertake structural reform and the coordination problems associated with the distribution of seigniorage revenue and the Stability and Growth Pact.

JEL-codes: F31 F33 (search for similar items in EconPapers)
Date: 1997-11
Note: IFM
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Published as DeEmu in Breed Perspectiet; Preadviezen 1997, Koninklijke Vereniging voo rde Stathuishoudkunde, pp. 1-17; Lemma BV, Utrecht, 1997.

Downloads: (external link)
http://www.nber.org/papers/w6292.pdf (application/pdf)

Related works:
Working Paper: Transition Issues for the European Monetary Union (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:6292

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w6292

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().