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1. Introduction
The final two lectures focus upon the attempts to develop a post-Bretton Woods monetary system for European Community members, which have now culminated in Economic and Monetary Union (EMU).

2. Pre-history of monetary union in Europe

When thehttps://www.51lunwen.org/liuxuelunwendx/ European integration process started after the Second World War, it was not at all clear that the ambition of the European Community would be to have a single currency. Clearly, the Rome Treaty aimed at further longer-term integration, however, at the time of its drafting it was simply not acceptable to put forward plans limiting national autonomy on exchange rates and other elements of monetary policy. Indeed, under the Bretton Woods system it was not really necessary, as that system provided Western Europe with a system of fixed, but adjustable exchange rates. Another reason why a separate European system of fixed exchange rates at this time seemed premature was that until 1961 the countries of the EEC were still bound by the transitional arrangements provided the IMF.
However, in November 1967 sterling devalued, an event that ended a period of seven years of no
parity changes. Its political implications were significant as it emphasized that the Bretton Woods
system was under attack.
Overlooking the period 1958-1969 we can observe a radical change in the position of the EEC
Member States in the international monetary system. Where the initial period had been characterized by a shortage of foreign currencies, the 1960s showed a long period of balance of payments surpluses and large foreign reserves. The position of the dollar and pound, the two reserve currencies at this time, gradually deteriorated, whilst the Community gradually became more interested in developing proposals for economic and monetary integration. These proposals were mainly a reaction to external events. Yet, at no point during this decade did a plan for monetary integration become a feasible project. The main reason was that an international monetary system still existed to provide stable exchange rates until 1967. Thus, it was only after the completion of the customs union in 1968 and the EEC exchange rate crisis that internal motivations for a monetary union became more important.

3. Alternative types of monetary union Monetary union has two essential components:
1. an exchange 代写留学生论文rate union, where participants permanently and irrevocably fix exchange rates amongst themselves, and
2. complete convertibility through capital market integration and the permanent absence of exchange controls, both of which ensure free factor mobility Consequently, there are a number of alternative sets of monetary arrangements that are in theory consistent with monetary union. Four basic types are outlined below:
1. The preferred model adopted by the EU is that of currency union. This involves the adoption by all participating states of a single currency. It requires prefect capital mobility and the complete integration of all national financial sectors. A successful single currency requires a monopoly of one supplier of the union currency, to prevent individual countries debasing the currency by printing more than they should in order to finance higher public expenditure. Moreover, since a single currency and monetary union would require a single interest rate and monetary p本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。