| Tekijä: | Grauwe, P. de |
| Otsikko: | Monetary union and convergence economics |
| Lehti: | European Economic Review
1996 : APR, VOL. 40:3-5, p. 1091-1101 |
| Asiasana: | MONETARY INTEGRATION EUROPEAN MONETARY SYSTEM EUROPE |
| Kieli: | eng |
| Tiivistelmä: | Literature on monetary integration is surveyed to discover the economic rationale for the Maastricht convergence criteria. The nominal convergence criteria (inflation, interest rates etc.) are concluded to have minor theoretical foundation. A stronger theoretical case can be made for the requirement of prior reduction of the government debt. It is also argued that the Maastricht convergence requirements would almost certainly lead to a 'Great Divide' in the European Union (or EU). Therefore it is concluded that less emphasis should be put on prior convergence conditions and more on strenghtening the functioning of the future monetary institutions of the EU. |
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