This highly topical book examines the development and future prospects for economic and monetary union in Europe. European Monetary Integration examines the background to economic and monetary union from a historical perspective that distinguishes between national and supranational currency areas, and an optimal currency area theory. The gradualist transition process is also considered.
The authors, leading academics from five European countries, consider the principal economic policies to be followed in achieving economic and monetary union. The role of the European central banks and monetary policy is examined, along with fiscal policy in monetary union and the operation and policies of the labour markets. The authors discuss the economic relationships between the euro area and other European economies including the transition and accession economies of Eastern Europe.
Edited by Eric J. Pentecost, Professor of Economics, Department of Economics, Loughborough University, UK and Andre Van Poeck, Professor of Economics, Department of Applied Economics, University of Antwerp, UFSIA, Belgium
Contents: Preface 1. The Historical Background to European Monetary Union Part I: EMU: The Past, 1979-99 2. The Political Economy of Transition to Monetary Union in Western Europe 3. German Monetary Unification and its Implications for EMU 4. The Theory of Monetary Union and EMU Part II: Present Issues for EMU 5. Monetary Policy in EMU 6. Fiscal Policy in EMU 7. EMU and European Unemployment Part III: The Future: Beyond 2000 8. ERM-II: Problems for the `Outs' and their Relationship with the `Ins' 9. Exchange Rate Strategies of New EU Entrants References Index