On the Feasibility of a One or Multi-Speed European Monetary Union

40 Pages Posted: 17 Oct 2007 Last revised: 27 Mar 2010

See all articles by Alberto F. Alesina

Alberto F. Alesina

Harvard University - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Vittorio Grilli

Independent; National Bureau of Economic Research (NBER)

Date Written: April 1993

Abstract

This paper addresses two questions: (1) Is a twelve country monetary union in Europe feasible; (2) Can monetary union be achieved at multi-speed, i.e., with a rust group of countries going first, and later admitting the others? After examining several politico-economic arguments concerning problems of feasibility of the union, we conclude with a fair amount of skepticism concerning the multi-speed idea. We show that the final result of the process of monetary integration is dependent upon at "how many speeds" Europe will proceed. Our discussion of feasibility shed some light on the political economy of the recent (Fall of 1992) turmoil in the monetary system of Europe.

Suggested Citation

Alesina, Alberto F. and Grilli, Vittorio, On the Feasibility of a One or Multi-Speed European Monetary Union (April 1993). NBER Working Paper No. w4350. Available at SSRN: https://ssrn.com/abstract=478744

Alberto F. Alesina (Contact Author)

Harvard University - Department of Economics ( email )

Littauer Center
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Centre for Economic Policy Research (CEPR)

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National Bureau of Economic Research (NBER)

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Vittorio Grilli

Independent

Ministero del Tesoro
Direzione Generale del Tesoro Capo del Servizio I via XX Settembre 97
Roma 00187

National Bureau of Economic Research (NBER)

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United States

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