Searching the Gains from a Monetary Union

Clas Wihlborg

Chapman University; University West


Gothenburg University Working Paper 1996:3

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

Not Available For Download

Date posted: April 14, 1997  

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

Contact Information

Clas Wihlborg (Contact Author)
Chapman University ( email )
333 N. Glassell
Orange, CA 92866
United States
+17147447630 (Phone)
University West ( email )
Trollhättan, 46186
Feedback to SSRN

Paper statistics
Abstract Views: 419