Abstract
There are various degrees of monetary integration, from the simple currency area to the full monetary union (with a single currency). Thus a preliminary conceptual and terminological clarification is called for. A good starting point is the definition given in a report to the Council and Commission of the European Economic Community commonly known as the Werner Report (1970). It identifies a first set of conditions (called “necessary conditions” by the subsequent Delors Report, 1989) to define a monetary union:
-
1)
within the area of a monetary union, currencies must be fully and irreversibly convertible into one another;
-
2)
par values must be irrevocably fixed;
-
3)
fluctuation margins around these parities must be eliminated;
-
4)
capital movements must be completely free.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Suggested Further Reading
Buiter, W.H., 1997, The Economic Case for Monetary Union in the European Union, in C. Deissenberg, R.F. Owen and D. Ulph (eds.), European Economic Integration, special supplement to Review of International Economics 5, issue 4, 10–35.
Corden, W.M., 1972, Monetary Integration, Essays in International Finance No. 93, International Finance Section, Princeton University.
De Grauwe, P., 2003, Economics of Monetary Union, 5th edition, Oxford: Oxford University Press.
Delors Report, 1989, Report on Economic and Monetary Union in the European Community,Brussels: Commission of the European Communities, 12 April.
European Commission, 1990, One Market, One Money: An Evaluation of the Potential Benefits and Costs of Forming an Economic and Monetary Union, European Economy No. 44, October.
European Central Bank, 2003, Review of the International Role of the Euro,December.
Feldstein, M., 1997, The Political Economy of the European Economic and Monetary Union: Political Sources of an Economic Liability, Journal of Economic Perspectives 11, 23–42.
Frankel, J.A. and A.K. Rose, 1997, Is EMU More Justifiable Ex Post than Ex Ante?, European Economic Review 41, 753–60.
Frankel, J. and A. Rose, 2002, An Estimate of the Effect of Common Currencies on Trade and Income, Quarterly Journal of Economics 117, 437–66.
Kenen, P. B., 2002, The Euro Versus the Dollar: Will There Be a Struggle for Dominance?, Journal of Policy Modeling 24, 347–354.
McKinnon, R., 2002, The Euro Versus the Dollar: Resolving a Historical Puzzle, Journal of Policy Modeling 24, 355–359.
Mundell, R.A., 1961, A Theory of Optimum Currency Areas, American Economic Review 51, 509–17.
Mundell, R.A., 1973, Uncommon Arguments for Common Currencies, in H.J. Johnson and A.K. Swoboda (eds.), The Economics of Common Currencies: Proceedings of the Madrid Conference on Optimum Currency Areas, London: AllenandUnwin.
Mundell, R.A., 1998, What the Euro Means for the Dollar and the Interna- tional Monetary System, Atlantic Economic Journal 26, 227–37.
Parsley, D. and S. Wei, 2001, Limiting Currency Volatility to Stimulate Goods Market Integration: A Price Based Approach, NBER WP No. 8468.
Prati, A. and G.J. Schinasi, 1999, Financial Stability in European Economic and Monetary Union, Princeton Studies in International Finance No. 86, International Finance Section, Princeton University.
Ricci, L., 1995, Exchange Rate Regimes and Location, International Economics Working Papers No. 291, University of Konstanz (SFB178), December; revised version circulated as International Monetary Fund Working Paper No. 97/69, June 1997.
Rogers, J. et al., 2001, Price Level Convergence and Inflation in Europe, W.P. 01–1, Institute for International Economics (Washington DC).
Rose, A., 2000, One Money, One Market: The Effect of Common Currencies on Trade, Economic Policy 30, 7–45.
Rose, A., 2002, The Effect of Common Currencies on International Trade: A Meta-Analysis, mimeo
Sinn, H.-W. and H. Feist, 1997, Eurowinners and Eurolosers: The Distribution of Seignorage Wealth in EMU, European Journal of Political Economy 13, 665–89.
Tavlas, G.S., 1993, The `New’ Theory of Optimum Currency Areas, World Economy 16, 663–85.
Tuya, J. and L. Zamalloa, 1994, Issues on Placing Bank Supervision in the Central Bank, in T. Balino and C. Cottarelli (eds.), Frameworks for Monetary Stability, Washington (DC): IMF.
Werner Report, 1970, Report to the Council and the Commission regarding the Step-by-Step Establishment of the Community’s Economic and Monetary Union, Brussels: Commission of the European Communities, 8 October.
Wyplosz, C., 1997, EMU: Why and How it Might Happen, Journal of Economic Perspectives 11, 3–22.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2004 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Gandolfo, G. (2004). International Monetary Integration and European Monetary Union. In: Elements of International Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-07005-5_11
Download citation
DOI: https://doi.org/10.1007/978-3-662-07005-5_11
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-05935-3
Online ISBN: 978-3-662-07005-5
eBook Packages: Springer Book Archive