英语论文网

INTERNATIONAL MONETARY ECONOMICS

Economic and Monetary Union in Europe

1. Introduction
英国留学生货币经济学论文 The final two lectures focus upon the attempts to develop a post-Breton 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 the 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 Breton 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 Breton 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.

General References:
(I) texts on the economics of Europe:
El-Agra (1985), Harrow (1990), McDonald and Deaden (1992), Nevins (1990), Swann (1990)
(ii) Specialist texts on monetary integration in Europe:
Crawford (1993), De Grouse (1994), De Grouse and Papa demos (1990), Gross and Thygesen (1992), Steiner (1994)
(iii) Critical texts on European monetary integration:
Why man, P., Bainbridge, M. and Burkett, B. (eds.) (2006) Implications of the euro (Rutledge) [https://books.google.co.uk/books?id=cRZC3FIHUDMC] Bainbridge, M. and www.51lunwen.org/InternationalMonetaryEconomics/ Why man, P. (2008) Britain, the euro and beyond (Ash gate) [https://books.google.co.uk/books?id=l7mP4bV8CsMC]