Can The European Monetary System Be Copied Outside Europe? Lessons From Ten Years of Monetary Policy Coordination In Europe
AbstractThis paper addresses the question of whether the European Monetary System can be copied outside Europe. Our answer is negative. The EMS is just one element of a more comprehensive design of institutional integration within Europe: the presence of the European Economic Community, and the dependence of EEC institutions upon exchange rate stability lend credibility to EMS exchange rate targets in a way that would not be present. say, among the United States, Europe and Japan. The EMS has also reproduced previous experiences of fixed exchange rates by not imposing the exchange rate constraint symmetrically upon all member countries: the system has de facto worked as a DM-zone, thus confirming that the institution of fixed rates pg cannot induce international monetary cooperation. Finally, the differences in the use of the inflation tax among European countries and the divergent behavior of government debt after 1979 indicate that the pursuit of monetary convergence among countries with different fiscal structures might entail substantial fiscal reforms.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2786.
Date of creation: Dec 1988
Date of revision:
Publication status: published as Francesco Giavazzi, Alberto Giovannini. "Can the European Monetary System be Copied Outside Europe? Lessons from Ten Years of Monetary Policy Coordination in Europe ," in William H. Branson, Jacob A. Frenkel, and Morris Goldstein, editors, "International Policy Coordination and Exchange Rate Fluctuations" University of Chicago Press (1990)
Note: ITI IFM
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- Francesco Giavazzi & Alberto Giovannini, 1990. "Can the European Monetary System be Copied Outside Europe? Lessons from Ten Years of Monetary Policy Coordination in Europe," NBER Chapters, in: International Policy Coordination and Exchange Rate Fluctuations, pages 247-278 National Bureau of Economic Research, Inc.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard Baldwin & Paul R. Krugman, 1986.
"Persistent Trade Effects of Large Exchage Rate Shocks,"
NBER Working Papers
2017, National Bureau of Economic Research, Inc.
- Baldwin, Richard & Krugman, Paul, 1989. "Persistent Trade Effects of Large Exchange Rate Shocks," The Quarterly Journal of Economics, MIT Press, vol. 104(4), pages 635-54, November.
- Paul R. Krugman, 1988. "Deindustrialization, Reindustrialization, and the Real Exchange Rate," NBER Working Papers 2586, National Bureau of Economic Research, Inc.
- Yeh, Kuo-chun & Ho, Tai-kuang, 2011. "ERM crisis in retrospect: What if a European central bank had been in existence before 1992?," Economic Modelling, Elsevier, vol. 28(4), pages 1526-1535, July.
- Eichengreen, Barry, 1989.
"The Comparative Performance of Fixed and Flexible Exchange Rate Regimes: Interwar Evidence,"
CEPR Discussion Papers
349, C.E.P.R. Discussion Papers.
- Barry Eichengreen., 1989. "The Comparative Performance of Fixed and Flexible Exchange Rate Regimes: Interwar Evidence," Economics Working Papers 89-119, University of California at Berkeley.
- Barry Eichengreen, 1989. "The Comparative Performance of Fixed and Flexible Exchange Rate Regimes : Interwar Evidence," NBER Working Papers 3097, National Bureau of Economic Research, Inc.
- Ploeg, F. van der, 1990.
"Macroeconomic policy coordination during the various phases of economic and monetary integration in Europe,"
1990-61, Tilburg University, Center for Economic Research.
- Van Der Ploeg, F., 1990. "Macroeconomic Policy Coordination During The Various Phases Of Economic And Monetary Integration In Europe," Papers 9061, Tilburg - Center for Economic Research.
- Ploeg, F. van der, 1989.
"Fiscal aspects of monetary integration in Europe,"
1989-30, Tilburg University, Center for Economic Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.