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Monetary union and economic growth

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  • John Vickers

    (Bank of England)

Abstract

This paper discusses possible links between monetary arrangements in particular monetary union and economic growth. It is stressed that growth depends ultimately on how the real economy works: there is no monetary magic that can conjure up growth. But monetary policy can contribute to conditions for sustainable growth by securing and maintaining price stability; monetary union might extend this. It might also deepen the single market. The elimination of nominal exchange rate movement among members of the union removes some sources of shock but also some ways of adjusting to shocks. This underlines the importance of other adjustment mechanism especially supply-side flexibility, which is crucial for growth in any event.

Suggested Citation

  • John Vickers, 2000. "Monetary union and economic growth," Working Paper Research 10, National Bank of Belgium.
    • Handle: RePEc:nbb:reswpp:200005-6
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    File URL: https://www.nbb.be/doc/ts/publications/wp/wp10en.pdf
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    References listed on IDEAS

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    Cited by:

    1. Laopodis, Nikiforos T., 2013. "Monetary policy and stock market dynamics across monetary regimes," Journal of International Money and Finance, Elsevier, vol. 33(C), pages 381-406.
    2. Mignamissi, Dieudonné, 2020. "The CFA Franc effect on trade," MPRA Paper 99018, University Library of Munich, Germany.
    3. Patrick Bisciari & Alain Durré & Alain Nyssens, 2003. "Stock market valuation in the United States," Working Paper Document 41, National Bank of Belgium.
    4. COMBEY, Adama & NUBUKPO, Kako, 2013. "Coordination des Politiques Economiques au Sein de la Zone UEMOA : Bilan et Perspectives [Economic Policy Coordination in the WAEMU: Results and Prospects]," MPRA Paper 58118, University Library of Munich, Germany, revised Aug 2014.
    5. GAMMADIGBE, Vigninou, 2015. "Indice de cohérence du policy-mix : une proposition [Policy-mix coherence index : a proposal]," MPRA Paper 63286, University Library of Munich, Germany.
    6. Constantin Colonescu, 2017. "Macroeconomic Effects of the European Monetary Union: A Counterfactual Analysis," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 3(2), pages 171-186, April.
    7. GAMMADIGBE, Vigninou, 2015. "Policy Mix Coherence Index (PMCI) : A Proposal," MPRA Paper 63583, University Library of Munich, Germany.
    8. Geert Langenus, 2006. "Fiscal sustainability indicators and policy design in the face of ageing," Working Paper Research 102, National Bank of Belgium.
    9. Ioannatos, Petros E., 2021. "Systematic growth asymmetry in the Eurozone? Evidence from a natural experiment," The Journal of Economic Asymmetries, Elsevier, vol. 24(C).
    10. Luc Aucremann & David Cornille, 2001. "Attractive prices and euro-rounding effects on inflation," Working Paper Document 17, National Bank of Belgium.

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