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Monetary Stability in Europe

Stefan Collignon
Routledge International Studies in Money and Banking 16
Routledge (February 2002)

The European Monetary Union (EMU) was created to overcome the economic difficulties that Europe experienced in the last part of the twentieth century. Like the European Community itself, EMU reflects the fact that European countries have learned that they have much to gain by working together as a whole.

EMU, however, is also a challenge to economic theory. Its success will depend on how it is managed, yet the full economic and political ramifications of the monetary union cannot be predicted. A large number of theoretical models and empirical facts have been scrutinised by economists yet, inevitably, explaining why past policy actions or institutions have failed and how the future could be improved sometimes requires questioning of well-established, familiar principles. Too often, new facts are interpreted in the light of conventional wisdom.

In this book, the author presents fresh perspectives on the theories surrounding EMU. Urging the reader to examine conventional ideas from new viewpoints, he discusses the events which led to EMU, analysing the current situation and projecting possible futures.