| |
| |
Introduction | |
| |
| |
| |
Costs and Benefits of Monetary Union | |
| |
| |
| |
The Costs of a Common Currency | |
| |
| |
Introduction | |
| |
| |
| |
Shifts in demand (Mundell) | |
| |
| |
| |
Monetary independence and government budgets | |
| |
| |
| |
Asymmetric shocks and debt dynamics | |
| |
| |
| |
Monetary union and budgetary union | |
| |
| |
| |
Private insurance schemes | |
| |
| |
| |
Differences in labour market institutions | |
| |
| |
| |
Differences in legal systems | |
| |
| |
| |
Conclusion | |
| |
| |
| |
The Theory of Optimum Currency Areas: A Critique | |
| |
| |
Introduction | |
| |
| |
| |
How relevant are the differences between countries? | |
| |
| |
| |
How effective are national monetary policies? | |
| |
| |
| |
National monetary policies, time consistency, and credibility | |
| |
| |
| |
Optimal stabilization and monetary union | |
| |
| |
| |
Mundell once more | |
| |
| |
| |
The cost of monetary union and the openness of countries | |
| |
| |
| |
Conclusion | |
| |
| |
| |
The Benefits of a Common Currency | |
| |
| |
Introduction | |
| |
| |
| |
Direct gains from the elimination of transaction costs | |
| |
| |
| |
Indirect gains from the elimination of transaction costs: price transparency | |
| |
| |
| |
Welfare gains from less uncertainty | |
| |
| |
| |
Monetary union and financial stability | |
| |
| |
| |
Exchange rate uncertainty and economic growth | |
| |
| |
| |
Monetary union and trade: the empirical evidence | |
| |
| |
| |
Benefits of an international currency | |
| |
| |
| |
Benefits of a monetary union and the openness of countries | |
| |
| |
| |
Conclusion | |
| |
| |
| |
Costs and Benefits Compared | |
| |
| |
Introduction | |
| |
| |
| |
Costs and benefits compared | |
| |
| |
| |
Monetary union, price and wage rigidities, and labour mobility | |
| |
| |
| |
Asymmetric shocks and labour market flexibility | |
| |
| |
| |
The degree of completeness of a monetary union | |
| |
| |
| |
Costs and benefits in the long run | |
| |
| |
| |
The challenge of enlargement of EMU | |
| |
| |
| |
Should the UK join EMU? | |
| |
| |
| |
Is Latin America an optimal currency area? | |
| |
| |
| |
The next monetary union in Asia? | |
| |
| |
| |
Monetary unions in Africa | |
| |
| |
| |
Conclusion | |
| |
| |
| |
Monetary Union | |
| |
| |
| |
The Fragility of Incomplete Monetary Unions | |
| |
| |
Introduction | |
| |
| |
| |
Fixed exchange rates regimes as incomplete monetary unions | |
| |
| |
| |
A monetary union without a budgetary union | |
| |
| |
| |
More bad news about bad equilibria: banking crises | |
| |
| |
| |
More bad news about bad equilibria: automatic stabilizers | |
| |
| |
| |
Conclusion | |
| |
| |
| |
How to Complete a Monetary Union? | |
| |
| |
Introduction | |
| |
| |
| |
The role of the central bank: lender of last resort | |
| |
| |
| |
Consolidating government budget and debts | |
| |
| |
| |
Coordination of budgetary and economic policies | |
| |
| |
| |
The theory of optimal currency areas and political union | |
| |
| |
| |
How does political integration affect the optimality of a monetary union? | |
| |
| |
| |
An omitted 'deep' variable | |
| |
| |
| |
Conclusion | |
| |
| |
| |
The Transition to a Monetary Union | |
| |
| |
Introduction | |
| |
| |
| |
The Maastricht Treaty | |
| |
| |
| |
Why convergence requirements? | |
| |
| |
| |
Technical problems during the transition: how to fix the conversion rates | |
| |
| |
| |
How to organize relations between the 'ins' and the 'outs' | |
| |
| |
| |
The new EU member countries and the convergence requirements | |
| |
| |
| |
Is the UK ready to enter the Eurozone? | |
| |
| |
| |
Conclusion | |
| |
| |
| |
The European Central Bank | |
| |
| |
Introduction | |
| |
| |
| |
The design of the ECB: the Maastricht Treaty | |
| |
| |
| |
Why has the German model prevailed? | |
| |
| |
| |
The EGB: a 'conservative' central bank? | |
| |
| |
| |
Independence and accountability | |
| |
| |
| |
The ECB: institutional framework | |
| |
| |
| |
Bank supervision and financial stability in the Eurozone | |
| |
| |
| |
The new financial regulatory and supervisory structure in the EU | |
| |
| |
| |
Conclusion | |
| |
| |
| |
Monetary Policy in the Eurozone | |
| |
| |
Introduction | |
| |
| |
| |
Central banking and asymmetries of shocks | |
| |
| |
| |
The Monetary Policy Strategy of the ECB: a description | |
| |
| |
| |
The Monetary Policy Strategy of the ECB: an evaluation | |
| |
| |
| |
The instruments of monetary policy in the Eurozone | |
| |
| |
| |
The Eurosystem as lender of last resort during the financial crisis | |
| |
| |
| |
Conclusion | |
| |
| |
| |
Fiscal Policies in Monetary Unions | |
| |
| |
Introduction | |
| |
| |
| |
Fiscal policies and the theory of optimum currency areas | |
| |
| |
| |
Sustainability of government budget deficits | |
| |
| |
| |
The argument for rules on government budget deficits | |
| |
| |
| |
Fiscal discipline in monetary unions | |
| |
| |
| |
Risks of default and bailout in a monetary union | |
| |
| |
| |
The Stability and Growth Pact: an evaluation | |
| |
| |
| |
A joint issue of common bonds | |
| |
| |
| |
Conclusion | |
| |
| |
| |
The Euro and Financial Markets | |
| |
| |
Introduction | |
| |
| |
| |
EMU and financial market integration in Europe | |
| |
| |
| |
Why financial market integration is important in a monetary union | |
| |
| |
| |
Conditions for the euro to become an international currency | |
| |
| |
| |
Conclusion | |
| |
| |
References | |
| |
| |
Index | |