EMS and EMU after the fall: a comment
Article Abstract:
Much of Portes' views on the EMU and EMS are correct, but there are four areas in which he needs to be criticised. In the area of monetary union, a common currency without satisfaction of the conditions of the Maastricht Treaty would most likely be worse than never having a common currency. It has not been proven that floating exchange rates or monetary union are required for full capital mobility. It has also not been proven that expectations were the main cause of the demise of the EMS as opposed to the fundamentals. Too much weights is also given to the dismantling of capital controls.
Publication Name: World Economy
Subject: Economics
ISSN: 0378-5920
Year: 1993
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Comments and discussion (2)
Article Abstract:
Richard Copper argues that capital controls may be more than transitory, which has significant policy and capital implications for developing countries. His study concludes that unregulated and uncontrolled capital flows have meaning only if a set of fairly rigorous conditions are obtained. Another conclusion is that liberalization is not compelling even if the proper conditions are present. He believes that capital movements have a stabilizing role and help minimize the impact of shocks. The question to be asked is how capital movements perform this function adequately.
Publication Name: Brookings Papers on Economic Activity
Subject: Economics
ISSN: 0007-2303
Year: 1999
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Proposals to ensure a smooth transition to European Monetary Union by 1999
Article Abstract:
European Monetary Union can be attained by creating a transition period where national currencies can freely circulate under the regulation of the European Central Bank (ECB). During this stage, the ECB will deal directly with commercial clearing banks, which then serve as intermediaries between ECB-operated euro arrangements and the public. This proposal eliminates the political and economic costs accompanying currency replacement.
Publication Name: World Economy
Subject: Economics
ISSN: 0378-5920
Year: 1996
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