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Towards European Monetary Union without the EMS

Authors :
Paul De Grauwe
Sergio Rebelo
Jurgen von Hagen
Source :
Economic Policy. 9:147
Publication Year :
1994
Publisher :
Oxford University Press (OUP), 1994.

Abstract

Towards EMU without the EMS Paul De Grauwe This paper examines the causes of the breakdown of the EMS, arguing that EMS credibility has always been impaired by recessions. This has relevance both for the future of monetary union in Europe and for the path by which it might be attained. I argue that, in comparison with the ERM, the present more flexible exchange rate arrangements will ease, not exacerbate, some of the technical problems in making the transition to EMU. I then analyse the political economy of monetary union and identify the main stumbling blocks that remain. Finally, I set out a specific proposal that takes advantage of the new opportunities to move forward towards EMU.

Details

ISSN :
02664658
Volume :
9
Database :
OpenAIRE
Journal :
Economic Policy
Accession number :
edsair.doi...........4aabc9c362cab8d055f2af4022379e01
Full Text :
https://doi.org/10.2307/1344460