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A Proposal to Introduce the ECU First in the East

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  • Jeffrey Frankel and Charles Wyplosz.

Abstract

First problem: Some of the countries of Eastern Europe and the former Soviet Union are sufficiently eager for price stability that they are willing to sacrifice monetary sovereignty, and to tie their fate to a reliable international currency. Neither the deutschemark nor the dollar, however, quite fits the bill to be that currency. Second problem: Western Europe is eager to make progress toward its goal of monetary union by 1999, with the ECU (European Currency Unit) as the common currency, but momentum is stalled. Solution to both problems: The ECU should receive its "first run" as a lawful medium of exchange in one of those Eastern European countries.

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Bibliographic Info

Paper provided by University of California at Berkeley in its series Center for International and Development Economics Research (CIDER) Working Papers with number C95-055.

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Date of creation: 01 Jun 1995
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Handle: RePEc:ucb:calbcd:c95-055

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