One Market, One Money An Evaluation of the Potential Benefits and Costs of Forming an Economic and Monetary Union

by Emerson, Michael; Gros, Daniel; Italianer, Alexander; Pisani-Ferry, Jean; Reichenbach, Horst

• ISBN13: 9780198773238
• ISBN10: 0198773234
• Format: Hardcover
• Copyright: 1992-04-02
• Publisher: Oxford University Press

Summary

The European Community is negotiating a new Treaty to establish the constitutional foundations of an economic and monetary union in the course of the 1990s.
Coming hard on the heels of the completion of the single market by 1992, economic and monetary union, including a new European Central Bank and the ecu as the single currency, will be the most important milestone in the construction of the new Europe since the Treaty of Rome of 1957.
This study provides the only comprehensive guide to the economic implications of economic and monetary union. Being the work of economists inside the EC Commission, it also reflects the considerations influencing the design of the union. The study provides a unique bridge between the insights of modern economic analysis and the work of the policy-makers preparing for economic and monetary union.

Table of Contents

A: Synthesis and Economic Principles: Synthesis

The Economics of EMU

B: The Main Benefits and Costs: Efficiency Gains

Benefits of Stable Prices

Implications for Public Finance

Adjusting without the Nominal Exchange Rate

External Dimensions

C: The Impact Through Time and Space: Transitional Issues

Spatial Aspects

National Perspectives on the Costs and Benefits of EMU

Annexes

Exchange Transaction Costs

Germany and the Netherlands

the Case of a de facto Monetary Union

European and German Economic and Monetary Union

a Comparison

Shocks and Adjustment in EMU

Simulations with the Quest Model

Exchange Rate Regimes in the EC

Simulations with the Multimod Model

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