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European economic and monetary union: Background and implications

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The European Union, which currently consists of 15 states, occupies an important place among the advanced economies. The final stage of the European economic and monetary union (EMU) is scheduled to begin in January 1999 with the adoption of a common currency called the "euro." A decision on which countries will participate in the euro area in 1999 will be made next spring based in part on the achievement of the economic criteria laid out in the Maastricht Treaty. In this article, the authors, after a brief discussion of the historical background, cast some light on the institutional aspects of the EMU, on the formulation and implementation of economic policy, as well as on the internal and external effects of EMU completion. For Canada, the direct implications of the shift to the euro appear to be relatively modest, at least in the short run.

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  • Chantal Dupasquier & Jocelyn Jacob, 1997. "European economic and monetary union: Background and implications," Bank of Canada Review, Bank of Canada, vol. 1997(Autumn), pages 3-28.
    • Handle: RePEc:bca:bcarev:v:1997:y:1997:i:autumn97:p:3-28
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    1. repec:cup:cbooks:9780521434553 is not listed on IDEAS
    2. Frankel, J-A & Rose, A-K, 1996. "Economic Structure and the Decision to Adopt a Common Currency," Papers 611, Stockholm - International Economic Studies.
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    4. Eichengreen, Barry & Bayoumi, Tamim, 1996. "Ever Closer to Heaven? An Optimum-Currency-Area Index for European Countries," Center for International and Development Economics Research, Working Paper Series qt5dt9501s, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
    5. Nick Chamie & Alain DeSerres & René Lalonde, "undated". "Optimum Currency Areas and Shock Asymmetry: A Comparison of Europe and the United States," Staff Working Papers 94-1, Bank of Canada.
    6. Alain DESERRES & René LALONDE, 1995. "Les sources des fluctuations des taux de change en Europe et leurs implications pour l’union monétaire," Discussion Papers (REL - Recherches Economiques de Louvain) 1995011, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    7. Nick Chamie & Alain DeSerres & Rene Lalonde, 1994. "Optimum Currency Areas and Shock Asymmetry A Comparison of Europe and the United States," International Finance 9406001, University Library of Munich, Germany, revised 19 Aug 1994.
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    9. Mr. Garry J. Schinasi & Mr. Alessandro Prati, 1997. "European Monetary Union and International Capital Markets: Structural Implications and Risks," IMF Working Papers 1997/062, International Monetary Fund.
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    Cited by:

    1. Mkenda, Beatrice Kalinda, 2001. "Is East Africa an Optimum Currency Area?," Working Papers in Economics 41, University of Gothenburg, Department of Economics.

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    More about this item

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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