IDEAS home Printed from https://ideas.repec.org/a/bla/intfin/v11y2008i3p269-282.html

Why the United Kingdom Should Join the Eurozone

Author

Listed:
  • Willem H. Buiter

Abstract

The message of this paper is that the global financial crisis that started in August 2007 provides another powerful and sufficient argument for the United Kingdom to join the EMU and adopt the euro as soon as technically possible. This new financial stability argument for UK membership in the EMU is separate from and in addition to the conventional optimal currency arguments for joining, which have also become more persuasive in the past few years.

Suggested Citation

  • Willem H. Buiter, 2008. "Why the United Kingdom Should Join the Eurozone," International Finance, Wiley Blackwell, vol. 11(3), pages 269-282, December.
    • Handle: RePEc:bla:intfin:v:11:y:2008:i:3:p:269-282
    DOI: 10.1111/j.1468-2362.2008.01224.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-2362.2008.01224.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-2362.2008.01224.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. W.H. Buiter, 2000. "Optimal Currency Areas: Why Does the Exchange Rate Regime Matter? (With an Application to UK Membership in EMU)," CEP Discussion Papers dp0462, Centre for Economic Performance, LSE.
    2. Willem H. Buiter, 2010. "Economic, Political and Institutional Prerequisites for Monetary Union Among the Members of the Gulf Cooperation Council," Chapters, in: Ronald MacDonald & Abdulrazak Al Faris (ed.), Currency Union and Exchange Rate Issues, chapter 3, Edward Elgar Publishing.
    3. Buiter, Willem, 2000. "Optimal Currency Areas: Why Does The Exchange Rate Regime Matter?," CEPR Discussion Papers 2366, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bergin, Paul R. & Glick, Reuven & Wu, Jyh-Lin, 2017. "“Conditional PPP” and real exchange rate convergence in the euro area," Journal of International Money and Finance, Elsevier, vol. 73(PA), pages 78-92.
    2. Sandeep Mazumder & Ryan Pahl, 2013. "What if the UK had Joined the Euro in 1999?," Open Economies Review, Springer, vol. 24(3), pages 447-470, July.
    3. J. James Reade & Ulrich Volz, 2009. "Too Much to Lose, or More to Gain? Should Sweden Join the Euro?," Economics Series Working Papers 442, University of Oxford, Department of Economics.
    4. Stefano d'Addona & Ilaria Musumeci, 2013. "The British opt-out from the European Monetary Union: empirical evidence from monetary policy rules," Applied Financial Economics, Taylor & Francis Journals, vol. 23(23), pages 1783-1795, December.
    5. BELAŞCU Lucian, 2016. "The Case of “EMU-Outsiders”: Economic and Political Considerations," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dellas, Harris & Tavlas, George S., 2009. "An optimum-currency-area odyssey," Journal of International Money and Finance, Elsevier, vol. 28(7), pages 1117-1137, November.
    2. J. James Reade & Ulrich Volz, 2009. "Too Much to Lose, or More to Gain? Should Sweden Join the Euro?," Economics Series Working Papers 442, University of Oxford, Department of Economics.
    3. Ronald MacDonald, "undated". "Currency issues and options for an independent Scotland," Working Papers 2013_12, Business School - Economics, University of Glasgow.
    4. Corsetti, Giancarlo, 2008. "A Modern Reconsideration of the Theory of Optimal Currency Areas," CEPR Discussion Papers 6712, C.E.P.R. Discussion Papers.
    5. Martha A. Starr, 2006. "One World, One Currency: Exploring The Issues," Contemporary Economic Policy, Western Economic Association International, vol. 24(4), pages 618-633, October.
    6. Ronald MacDonald & Research Fellow CESifo Policy Group Munich, "undated". "An independent Scotland’s currency options redux: Assessing the costs and benefits of currency choice," Working Papers 2014_11, Business School - Economics, University of Glasgow.
    7. Mohd Hussain Kunroo & Irfan Ahmad Sofi & Naushad Ali Azad, 2016. "Trade implications of the Euro in EMU countries: a panel gravity analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(2), pages 391-413, May.
    8. Soós, Károly Attila, 2023. "Paul De Grauwe: Economics of Monetary Union. Oxford University Press, Oxford, 2022, 320 o [Paul De Grauwe: Economics of Monetary Union. Oxford University Press, Oxford, 2022, 320 p]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 1173-1187.
    9. Soós, Károly Attila, 2021. "Az optimális valutaövezet két elmélete - aszimmetrikus sokkok és nemzetközi pénzügyi integráció [Principles of optimal currency areas: asymmetric shocks and international financial integration]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1250-1275.
    10. Guglielmo Maria Caporale & Davide Ciferri & Alessandro Girardi, 2011. "Are The Baltic Countries Ready To Adopt The Euro? A Generalized Purchasing Power Parity Approach," Manchester School, University of Manchester, vol. 79(3), pages 429-454, June.
    11. Dominick Salvatore, 2002. "The Euro, the European Central Bank, and the International Monetary System," The ANNALS of the American Academy of Political and Social Science, , vol. 579(1), pages 153-167, January.
    12. Heinz Handler, 2013. "The Eurozone: Piecemeal Approach to an Optimum Currency Area," WIFO Working Papers 446, WIFO.
    13. Milan Trajkovic, 2022. "Impact of macroeconomic stability on private fixed investments in selected countries of Central and Southeast Europe," Working Papers Bulletin 7, National Bank of Serbia.
    14. Annika Alexius & Erik Post, 2008. "Exchange rates and asymmetric shocks in small open economies," Empirical Economics, Springer, vol. 35(3), pages 527-541, November.
    15. J. James Reade & Ulrich Volz, 2011. "When You Got Nothing, You Got Nothing to Lose – Regional Monetary Integration and Policy Independence," Chapters, in: Ulrich Volz (ed.), Regional Integration, Economic Development and Global Governance, chapter 12, Edward Elgar Publishing.
    16. Kuhelika De, 2025. "Asymmetric Shocks and the Role of Exchange Rate in Emerging Markets: Evidence from India," Open Economies Review, Springer, vol. 36(2), pages 607-649, April.
    17. Salá Rios, Mercé & Farré Perdiguer, Mariona & Torres Solé, Teresa, 2011. "El ciclo económico de Cataluña. Un análisis de la simetría respecto a España y a la UEM/Catalonia's Business Cycle. An Analysis of the Symmetry in Relation to Spain and the EMU," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 913(24á.)-9, Diciembre.
    18. Manopimoke, Pym & Nookhwun, Nuwat & Pattararangrong, Jettawat, 2024. "Exchange rate in emerging markets: Shock absorber or source of shock?," Journal of International Money and Finance, Elsevier, vol. 148(C).
    19. Michael Artis, 2008. "What do we now know about currency unions?," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 1(1), pages 13-29.
    20. M.J. Artis, 2003. "Reflections on the optimal currency area (OCA) criteria in the light of EMU," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 8(4), pages 297-307.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:intfin:v:11:y:2008:i:3:p:269-282. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1367-0271 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.