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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. De Grauwe, Paul, 2016. "Economics of Monetary Union," OUP Catalogue, Oxford University Press, edition 11, number 9780198739876, Decembrie.
    2. 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.
    3. 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.
    4. 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, Decembrie.
    5. Allington, Nigel FB & Kattuman, Paul A & Waldmann, Florian A, 2005. "One Market, One Money, One Price?," MPRA Paper 835, University Library of Munich, Germany.
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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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