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Searching the Gains from a Monetary Union

Gothenburg University Working Paper 1996:3

Posted: 14 Apr 1997  

Clas Wihlborg

Chapman University; University West

Date Written: Undated

Abstract

There are potential gains for most countries joining the planned EMU. It is argued that these gains are not primarily due to the creation of a currency area but, they depend on the high degree of political independence a European central bank can obtain. The transition path to the EMU with its convergence criteria is unnecessarily costly. In Appendix microeconomic benefits of a monetary union are evaluated on both theoretical and empirical grounds. It is argued that a currency union per se does not reduce the costs caused by uncertainty related to exchange rates and other macroecomomic variables. The realization of microeconomic benefits requires that the EMU contributes to macroeconomic stability.

JEL Classification: E52, E58, E61, F36, F41, F42

Suggested Citation

Wihlborg , Clas, Searching the Gains from a Monetary Union (Undated). Gothenburg University Working Paper 1996:3. Available at SSRN: https://ssrn.com/abstract=3886

Clas Wihlborg (Contact Author)

Chapman University ( email )

333 N. Glassell
Orange, CA 92866
United States
+17147447630 (Phone)

University West ( email )

Trollhättan, 46186
Sweden

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