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One Market, One Money – A Mistaken Argument (post factum)?

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  • Gros, Daniel

Abstract

Why should Europe opt for monetary union? ‘One Market needs one Money'! This is, at first sight, the key argument of the influential report by the European Commission entitled “One Market, One Money”, published in 1990. But after closer examination of the report, Daniel Gros considers its rather more agnostic subtitle: “An evaluation of the potential benefits and costs of forming an economic and monetary union” and concludes that the key argument was in fact the other way round: one money would create one market. Unfortunately, the authors of 1990 did not recognise that ‘one money’ would foster huge cross-border financial flows that would one day lead to a very costly financial crisis.

Suggested Citation

  • Gros, Daniel, 2017. "One Market, One Money – A Mistaken Argument (post factum)?," CEPS Papers 12245, Centre for European Policy Studies.
    • Handle: RePEc:eps:cepswp:12245
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    File URL: https://www.ceps.eu/system/files/DG_OneMarketOneMoney_0.pdf
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    References listed on IDEAS

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    1. Nigel F.B. Allington & Paul A. Kattuman & Florian A. Waldmann, 2005. "One Market, One Money, One Price?," International Journal of Central Banking, International Journal of Central Banking, vol. 1(3), December.
    2. De Grauwe, Paul, 2016. "Economics of Monetary Union," OUP Catalogue, Oxford University Press, edition 11, number 9780198739876.
    3. Emerson, Michael & Gros, Daniel & Italianer, Alexander & ,, 1992. "One Market, One Money: An Evaluation of the Potential Benefits and Costs of Forming an Economic and Monetary Union," OUP Catalogue, Oxford University Press, number 9780198773245.
    4. Allington, Nigel FB & Kattuman, Paul A & Waldmann, Florian A, 2005. "One Market, One Money, One Price?," MPRA Paper 835, University Library of Munich, Germany.
    5. Olivier Blanchard & Francesco Giavazzi, 2002. "Current Account Deficits in the Euro Area: The End of the Feldstein Horioka Puzzle?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(2), pages 147-210.
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    1. Produzione scientifica (i coNpetenti...)
      by Alberto Bagnai in Goofynomics on 2019-03-03 17:02:00

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