Adjustment and Growth in the European Monetary Union

by Edited by Francisco Torres , Francesco Giavazzi

• ISBN13: 9780521440196
• ISBN10: 052144019X
• Format: Hardcover
• Copyright: 1993-10-29
• Publisher: Cambridge University Press

Summary

The Maastricht Treaty, signed in December 1991, set a timetable for the European Community's economic and monetary union (EMU) and clearly defined the institutional policy changes necessary for its achievement. Subsequent developments have demonstrated, however, the importance of many key issues in the transition to EMU that were largely neglected at the time. This volume reports the proceedings of a joint CEPR conference with the Banco de Portugal, held in January 1992. In these papers, leading international experts address the instability of the transition to EMU, the long-run implications of monetary union and the single market for growth and convergence in Europe. They also consider the prospects for inflation and fiscal convergence, regional policy and the integration of financial markets and fiscal systems. Attention focuses on adjustment mechanisms with differentiated shocks, region-specific business cycles and excessive industrial concentration and the cases for a two-speed EMU and fiscal federalism.

Table of Contents

1. Introduction Francisco Torres and Francesco Giavazzi

2. Economic and monetary union: critical notes on the Maastricht Treaty revisions Niels Thygesen

Discussions Lorenzo Bini Smaghi, Vitor Gaspar, and José

Viñ

als

3. The design of optimal fiscal rules for Europe after 1992 Giancarlo Cosetti and Nouriel Roubini

Discussion Axel A. Weber

4. Contracts, credibility and common knowledge: their influence on inflation convergence Marcus Miller and Alan Sutherland

Discussions David Backus and Michael Dooley

5. Inflation in fixed exchange rate regimes: the recent Portuguese experience Sé

rgio Rebelo

Discussions Michael Moore and Guide Tabellini

6. Models of economic integration and localized growth Giuseppe Bertola

Discussions Joã

o Cé

sar das Neves and Charles Wyplosz

7. Shocking aspects of European monetary integration Tamim Bayoumi and Barry Eichengreen

Discussions Giorgio Basevi and Patrick Minford

8. Lessons of Massachusetts for EMU Paul Krugman

Discussions Alessandra Casella and Paul de Grauwe

9. Financial and currency integration in the European monetary system: the statistical record Jeffrey Frankel, Steven Phillips and Menzie Chinn

Discussions Rudiger Dornbusch and Paolo Onofri

10. Currency substitution: from the policy questions to the theory and back Matthew Canzoneri, Behzad Diba and Albert Giovanni

Discussions Lucas Papdemos and Antó

nio S. Mello

11. Coordination of capital income taxes in the economic and monetary union: what needs to be done? Peter B. Sø

renson

Discussion Alberto Giovannini

Index.