IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/453.html
   My bibliography  Save this paper

Costs and Benefits of Monetary Union

Author

Listed:
  • Eichengreen, Barry

Abstract

This paper analyses the costs and benefits of European monetary unification. The benefits take the form of the reduction in exchange risk, equalization of interest rates, decline in relative price variability and general increase in economic efficiency likely to accompany unification. The costs include loss of national autonomy over monetary and fiscal policies. Historical evidence and the experience of the US currency and customs union are used as sources of evidence on both the benefits and costs. Conditions are isolated under which the sacrifice of monetary and fiscal autonomy is likely to be significant. Institutional innovations such as fiscal federalism within the EC and expanded swap facilities within the EMS are proposed for dealing with the strains that are likely to arise in Stage 2 of the Delors Plan.

Suggested Citation

  • Eichengreen, Barry, 1990. "Costs and Benefits of Monetary Union," CEPR Discussion Papers 453, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:453
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=453
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Emilia Gyoerk, 2017. "Economic Costs and Benefits of EMU Membership from the Perspective of a Non-member," Open Economies Review, Springer, vol. 28(5), pages 893-921, November.
    2. Jonas Ljungberg & Anders Ögren, 2017. "Exchange rates, catch up, and lagging behind in Europe since 1870," Working Papers 17022, Economic History Society.

    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:cpr:ceprdp:453. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    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.