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The Currency Reform as the Last Stage of Economic and Monetary Union: Some Policy Questions

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  • Alberto Giovannini

Abstract

The paper discusses the policy problems of a project aimed at substituting several national currencies with one single currency. While these problems are of general interest, the analysis is motivated by the plan for Economic and Monetary Union among the members of the European Community. The issues discussed include the choice of conversion rates and the effects of exchange-rate devaluations at the time of the monetary reform.

Suggested Citation

  • Alberto Giovannini, 1991. "The Currency Reform as the Last Stage of Economic and Monetary Union: Some Policy Questions," NBER Working Papers 3917, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:3917
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    References listed on IDEAS

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    1. Alberto Giovannini, 1990. "European Monetary Reform: Progress and Prospects," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 21(2), pages 217-292.
    2. Kenneth A. Froot & Kenneth Rogoff, 1991. "The EMS, the EMU, and the Transition to a Common Currency," NBER Chapters, in: NBER Macroeconomics Annual 1991, Volume 6, pages 269-328, National Bureau of Economic Research, Inc.
    3. Greenwood, Jeremy & Williamson, Stephen D., 1989. "International financial intermediation and aggregate fluctuations under alternative exchange rate regimes," Journal of Monetary Economics, Elsevier, vol. 23(3), pages 401-431, May.
    4. Heymann, Daniel, 1986. "Tres ensayos sobre inflación y políticas de estabilización," Oficina de la CEPAL en Buenos Aires (Estudios e Investigaciones) 28518, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. Giovannini, A., 1990. "The Transition To European Monetary Union," Princeton Studies in International Economics 178, International Economics Section, Departement of Economics Princeton University,.
    6. Dornbusch, Rudiger, 1973. "Devaluation, Money, and Nontraded Goods," American Economic Review, American Economic Association, vol. 63(5), pages 871-880, December.
    7. Feenstra, Robert C., 1986. "Functional equivalence between liquidity costs and the utility of money," Journal of Monetary Economics, Elsevier, vol. 17(2), pages 271-291, March.
    8. N. Gregory Mankiw & David Romer (ed.), 1991. "New Keynesian Economics - Vol. 1: Imperfect Competition and Sticky Prices," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262631334, April.
    9. Mussa, Michael, 1986. "Nominal exchange rate regimes and the behavior of real exchange rates: Evidence and implications," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 25(1), pages 117-214, January.
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    Cited by:

    1. Lehment, Harmen & Scheide, Joachim, 1995. "Der Fahrplan für die Europäische Währungsunion: noch erheblicher Handlungs- und Klärungsbedarf," Kiel Discussion Papers 259, Kiel Institute for the World Economy (IfW Kiel).
    2. Lehment, Harmen & Scheide, Joachim, 1992. "Die europäische Wirtschafts- und Währungsunion: Probleme des Übergangs," Open Access Publications from Kiel Institute for the World Economy 1513, Kiel Institute for the World Economy (IfW Kiel).

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