The Road to Monetary Union Revisited
Title | The Road to Monetary Union Revisited PDF eBook |
Author | John F. Chown |
Publisher | |
Pages | 44 |
Release | 1994 |
Genre | ECU |
ISBN |
The Road to Monetary Union Revisited
Title | The Road to Monetary Union Revisited PDF eBook |
Author | Institute of Directors |
Publisher | |
Pages | 64 |
Release | 1993 |
Genre | European currency unit |
ISBN | 9780901230188 |
The Delors Report
Title | The Delors Report PDF eBook |
Author | Jacques L'Huillier |
Publisher | |
Pages | |
Release | 1989 |
Genre | |
ISBN |
Revisiting the Economic Case for Fiscal Union in the Euro Area
Title | Revisiting the Economic Case for Fiscal Union in the Euro Area PDF eBook |
Author | Mr.Helge Berger |
Publisher | International Monetary Fund |
Pages | 63 |
Release | 2018-02-20 |
Genre | Business & Economics |
ISBN | 1484344030 |
The paper makes an analytical contribution to the revived discussion about the euro area’s institutional setup. After significant progress during the euro crisis, the drive to complete Europe’s Economic and Monetary Union (EMU) had stalled, and the way forward will benefit from an in-depth look at the conceptual issues raised by the evolution and architecture of Europe, and the tradeoffs involved. A thorough look at the underlying economic issues suggests that in the long run, EMU will benefit from progressing along three mutually supporting tracks: introduce more fiscal risk sharing, helping to make the sovereign “no bailout” rule credible; complementary financial sector reforms to delink sovereigns and banks; and more effective rules to discourage moral hazard. This evolution would ensure that financial markets provide incentives for fiscal discipline. Introducing more fiscal union comes with myriad legal, technical, operational, and political problems, raising questions well beyond the remit of economics. But without decisive progress to foster fiscal risk sharing, EMU will continue to face existential risks.
The Chicago Plan Revisited
Title | The Chicago Plan Revisited PDF eBook |
Author | Mr.Jaromir Benes |
Publisher | International Monetary Fund |
Pages | 71 |
Release | 2012-08-01 |
Genre | Business & Economics |
ISBN | 1475505523 |
At the height of the Great Depression a number of leading U.S. economists advanced a proposal for monetary reform that became known as the Chicago Plan. It envisaged the separation of the monetary and credit functions of the banking system, by requiring 100% reserve backing for deposits. Irving Fisher (1936) claimed the following advantages for this plan: (1) Much better control of a major source of business cycle fluctuations, sudden increases and contractions of bank credit and of the supply of bank-created money. (2) Complete elimination of bank runs. (3) Dramatic reduction of the (net) public debt. (4) Dramatic reduction of private debt, as money creation no longer requires simultaneous debt creation. We study these claims by embedding a comprehensive and carefully calibrated model of the banking system in a DSGE model of the U.S. economy. We find support for all four of Fisher's claims. Furthermore, output gains approach 10 percent, and steady state inflation can drop to zero without posing problems for the conduct of monetary policy.
The Political Economy of Monetary Solidarity
Title | The Political Economy of Monetary Solidarity PDF eBook |
Author | Waltraud Schelkle |
Publisher | Oxford University Press |
Pages | 334 |
Release | 2017-04-13 |
Genre | Political Science |
ISBN | 0192524798 |
Creating the European monetary union between diverse and unequal nation states is arguably one of the biggest social experiments in history. This book offers an explanation of how the euro experiment came about and was sustained despite a severe crisis, and provides a comparison with the monetary-financial history of the US. The euro experiment can be understood as risk-sharing through a currency that is issued by a supranational central bank. A single currency shares liquidity risks by creating larger markets for all financial assets. A single monetary policy responds to business cycles in the currency area as a whole rather than managing the path of one dominant economy. Mechanisms of risk-sharing become institutions of monetary solidarity if they are consciously maintained, but they will periodically face opposition in member states. This book argues that diversity of membership is not an economic obstacle to the success of the euro, as diversity increases the potential gains from risk sharing. But political cooperation is needed to realize this potential, and such cooperation is up against collective action problems which become more intractable as the parties become more diverse. Hence, risk-sharing usually comes about as a collective by-product of national incentives. This political-economic tension can explain why the gains from risk-sharing are not more fully exploited, both in the euro area and in the US dollar area. This approach to monetary integration is based on the theory of collective action when hierarchy is not available as a solution to inter-state cooperation. The theory originates with Keohane and Ostrom (1995) and it is applied in this book, taking into account the latest research on the inherent instability of financial market integration.
Optimum Currency Areas Revisited on the Transition Path to a Currency Union
Title | Optimum Currency Areas Revisited on the Transition Path to a Currency Union PDF eBook |
Author | Clas Wihlborg |
Publisher | |
Pages | 23 |
Release | 1991 |
Genre | |
ISBN |