Abstract
It may be late in the game to debate the merits of EMU for its members. But I begin with a review of the pros and cons. The UK, Sweden and others have yet to decide whether to join, so for them the evaluation is still relevant. The second half of these notes will turn to the implications of the euro as a new international currency. Impacts on countries outside EMU are discussed in addition to countries inside.
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.
References
Alesina, Alberto, and Vittorio Grilli. 1991. ‘The European Central Bank: Reshaping Monetary Politics in Europe.’ In M. Canzoneri, V. Grilli, and P. Masson, eds., Establishing a Central Bank: Issues in Europe and Lessons from the US. London: CEPR. Cambridge: Cambridge University Press.
Bayoumi, Tamim, and Barry Eichengreen. 1993a. ‘Shocking Aspects of European Monetary Unification.’ In F. Giavazzi and F. Torres, eds., The Transition to Economic and Monetary Union in Europe. New York: Cambridge University Press.
Bayoumi, Tamim, and Barry Eichengreen. 1993b. ‘Is There a Conflict Between EC Enlargement and European Monetary Unification?’ Greek Economic Review, 15, no. 1 (Autumn), pp. 131–154.
Bayoumi, Tamim, and Barry Eichengreen. 1993c. ‘Monetary and Exchange Rate Arrangements for NAFTA.’ IMF Discussion Paper, no. WP/93/20 (March).
Bayoumi, Tamim, and Barry Eichengreen. 1994. ‘One Money or Many? Analyzing the Prospects for Monetary Unification in Various Parts of the World.’ Princeton Studies in International Finance, no. 76 (September). International Finance Section, Princeton University.
Blanchard, Olivier, and Lawrence Katz. 1992 ‘Regional Evolutions.’ Brookings Papers on Economic Activity, no. 1, pp. 1–61.
Cohen, Daniel, and Charles Wyplosz. 1989. ‘The European Monetary Union: An Agnostic Evaluation.’ In R. Bryant, D. Currie, J. Frenkel, P. Masson, and R. Portes, eds., Macroeconomic Policies in an Interdependent World. Washington, D.C.: Brookings, pp. 311–337.
Corden, W. Max. 1972. ‘Monetary Integration.’ Princeton Studies in International Finance, no. 93 (April). International Finance Section, Princeton University.
De Grauwe, Paul, and Wim Vanhaverbeke, 1991. ‘Is Europe an Optimum Currency Area? Evidence from Regional Data.’ CEPR Discussion Paper, no. 555 (May). London.
Edison, Hali, and Michael Melvin. 1990. ‘The Determinants and Implications of the Choice of an Exchange Rate System.’ In W. Haraf and T. Willett, eds., Monetary Policy For a Volatile Global Economy. Washington, D.C.: American Enterprise Institute.
Eichengreen, Barry. 1988. ‘Real Exchange Rate Behavior Under Alternative International Monetary Regimes: Interwar Evidence.’ European Economic Review, no. 32, pp. 363–371.
Eichengreen, Barry. 1992. ‘Should the Maastricht Treaty Be Saved?’ Princeton Studies in International Finance, no. 74 (December). International Finance Section, Princeton University.
Frankel, Jeffrey, and Andrew Rose. 1998. ‘The Endogeneity of the Optimum Currency Area Criterion.’ The Economic Journal, vol. 108, no. 449 (July), pp. 1009–1025.
Frankel, Jeffrey, and Shang-Jin Wei. 1995a. ‘Emerging Currency Blocs.’ In H. Genberg, ed., The International Monetary System: Its Institutions and its Future. Berlin: Springer, pp. 111–143.
Frankel, Jeffrey, and Shang-Jin Wei. 1995b. ‘European Integration and the Regionalization of World Trade and Currencies: The Economics and the Politics.’ In Barry Eichengreen, Jeffry Frieden, and Jürgen von Hagen, eds., Monetary and Fiscal Policy in an Integrated Europe. New York and Heidelberg: Springer-Verlag Press.
Frankel, Jeffrey, and Shang-Jin Wei. 1997. ‘Regionalization of World Trade and Currencies: Economics and Politics.’ In Frankel, ed., The Regionalization of the World Economy. Chicago: University of Chicago Press.
Kenen, Peter. 1969. ‘The Theory of Optimum Currency Areas: An Eclectic View.’ In R. Mundell and A. Swoboda, eds., Monetary Problems in the International Economy. Chicago: University of Chicago Press.
Krugman, Paul. 1993. ‘Lessons of Massachusetts for EMU.’ In F. Giavazzi and F. Torres, eds., The Transition to Economic and Monetary Union in Europe. New York: Cambridge University Press, pp. 241–261.
McKinnon, Ronald I. 1963. ‘Optimum Currency Areas.’ American Economic Review, vol. 53 (September), pp. 717–725.
Mundell, Robert A. 1961. ‘A Theory of Optimum Currency Areas.’ American Economic Review, vol. 51 (November), pp. 509–517.
Romer, David. 1993. ‘Openness and Inflation: Theory and Evidence.’ Quarterly Journal of Economics, vol. 108, no. 4 (November), pp. 869–903.
Sala-i-Martin, Xavier, and Jeffrey Sachs. 1991. ‘Fiscal Federalism and Optimum Currency Areas.’ In M. Canzoneri, V. Grilli, and P. Masson, eds., Establishing a Central Bank: Issues in Europe and Lessons from the US. London: CEPR. Cambridge: Cambridge University Press, pp. 195–219.
Tavlas, George. 1992. ‘The “New” Theory of Optimal Currency Areas.’ Washington, D.C.: International Monetary Fund.
Editor information
Rights and permissions
Copyright information
© 2000 Springer Science+Business Media New York
About this chapter
Cite this chapter
Frankel, J.A. (2000). Impact of the Euro on Members and Non-Members. In: Mundell, R., Clesse, A. (eds) The Euro as a Stabilizer in the International Economic System. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-4457-9_7
Download citation
DOI: https://doi.org/10.1007/978-1-4615-4457-9_7
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4613-7007-9
Online ISBN: 978-1-4615-4457-9
eBook Packages: Springer Book Archive