European Monetary Union

New England Economic Review

Volumn , Issue 2, 1998, Pages

  Klein, Michael W ^a  

^a NONE

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EID: 0039399916     PISSN: 00284726     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (9)

1. Fiscal reforms in Italy, such as efforts to eliminate fraud and waste, were undertaken, at least in part, to meet the requirements of EMU. See "Italy's Cleanup of Fraud, Waste Yields Results," The Wall Street Journal, Monday, March 2, 1998, p. B3A.
2. See "Europeans Clear Remaining Hurdle to Currency Unity," The New York Times, Saturday, February 28, 1998, p. A1.
3. See Martin Feldstein, "The Political Economy of European Economic and Monetary Union," Journal of Economic Perspectives, vol. 11, no. 4, Fall 1997, pp. 23-42. For a somewhat contrary view, see, in the same volume, Charles Wyplosz, "EMU: Why and How It Might Happen," pp. 3-21.
4. See Martin Feldstein, "The Political Economy of European Economic and Monetary Union," Journal of Economic Perspectives, vol. 11, no. 4, Fall 1997, pp. 23-42. For a somewhat contrary view, see, in the same volume, Charles Wyplosz, "EMU: Why and How It Might Happen," pp. 3-21.
5. For a wide-ranging discussion of this topic, and EMU in general, see Maurice Obstfeld, "Europe's Gamble," Brookings Papers on Economic Activity, 1997, number 2, pp. 241-300.
6. Another option is that all necessary adjustments be undertaken by other members of the fixed exchange rate system, an option obviously not open to more than one member.
7. Sterilized intervention by a central bank, such as the coincident sale of foreign assets and purchase of domestic assets in a manner leaving the overall money stock unchanged, could in theory allow monetary authorities to manage exchange rates with one hand and the domestic money supply with the other. Evidence suggests, however, that in practice sterilized intervention has at best a limited effect on exchange rates, especially if it is not followed by a change in monetary policy. For a review of this topic, see Kathryn M. Dominguez and Jeffrey A. Frankel, Does Foreign Exchange Intervention Work?, Institute for International Economics, Washington, DC, September 1993.
8. See "German Economists Plead for a Delay in Introducing the Euro," The New York Times, Tuesday, February 10, 1998, p. D4.
9. See, for example, Lester Thurow, "Imagine a Run on the Dollar," The Boston Globe, Tuesday, February 24, 1998, p. D4.