European Monetary and Fiscal Policy

by Eijffinger, Sylvester C. W.; de Haan, Jakob

• ISBN13: 9780198776161
• ISBN10: 0198776160
• Format: Paperback
• Copyright: 2000-09-21
• Publisher: Oxford University Press

Summary

At the launch of the Euro, predictions about what has been dubbed"Euroland" were mixed. Supporters say the unprecented switch to a singlecurrency will benefit business and consumers alike. But critics warn that EMUis a giant leap into the unknown. The purpose of this book is to bring togetherthe available evidence to date about EMU, focusing on European monetary andfiscal policy.Sylvester Eijffinger and Jakob de Haan have produced a fresh andforward-looking account of the issues surrounding monetary integration. Theiranalysis includes the functions and goals of the European Central Bank, theTreaty on European Union, the Stability and Growth Pact, and the harmonizationof taxes. They go on to discuss the targets and instruments of European monetarypolicy, the relationships between the 'ins' and 'outs' within Europe, theintegration of European financial markets, and the competition between financialinstitutions in Europe. Finally, the international role of the Euro and futureof international policy co-ordination are investigated.The text has been presented for maximum clarity: each chapter concludes with asummary of the main issues, and case material and key topics are highlighted inboxes in order to help students focus on essential information. This thorough,innovative, and well-researched analysis has been carefully tailored to meet thecourse needs of undergraduate students of economic integration, Europeaneconomics, international economics, and European studies.

Table of Contents

List of Figures	vii
List of Tables	viii
List of Boxes	x
List of Abbreviations	xi
Preface	xiii
Introduction	1	(2)
European Monetary Integration	3	(28)
Introduction	3	(1)
Origins of European Monetary Integration	4	(4)
The European Monetary System: Phases and Crises	8	(8)
The Costs and Benefits of a Monetary Union	16	(11)
The Transition to Economic and Monetary Union	27	(3)
Conclusion	30	(1)
EMU and the European (System of) Central Bank(s)	31	(23)
Introduction	31	(1)
The European (System of) Central Bank(s)	32	(6)
Central Bank Independence: The Rationale	38	(5)
Independence of the E(S)CB	43	(3)
Accountability of the E(S)CB	46	(6)
Conclusion	52	(2)
European Monetary Policy	54	(26)
Introduction	54	(1)
The Monetary Policy Strategy: Options	55	(6)
The Monetary Policy Strategy of the ECB	61	(5)
The Instruments of European Monetary Policy	66	(5)
The Relation between the `Ins' and the `Outs'	71	(3)
Banking Supervision	74	(4)
Conclusion	78	(2)
National Fiscal Policy in EMU	80	(27)
Introduction	80	(1)
The Need for Fiscal Rules in EMU	81	(6)
The Stability and Growth Pact	87	(8)
Harmonization of Taxes	95	(5)
Tax Competition	100	(6)
Conclusion	106	(1)
European Fiscal Policy	107	(32)
Introduction	107	(1)
The Budget of the European Union	108	(14)
Agenda 2000: Reform and New Member States	122	(5)
A European Stabilization Policy?	127	(10)
Conclusion	137	(2)
Financial Integration and Financial Market Structure	139	(26)
Introduction	139	(1)
The Integration of European Financial Markets	140	(6)
Financial Market Structure and Monetary Transmission	146	(9)
The New European Financial Landscape	155	(9)
Conclusion	164	(1)
EMU and International Policy Co-ordination	165	(17)
Introduction	165	(1)
The International Role of the Euro	165	(10)
Co-ordination of Exchange Rate Policies	175	(5)
Conclusion	180	(2)
References	182	(8)
Index	190