European Monetary Integration

Part 1 A brief history of European monetary integration: the beginning - from the European Payments Union to the Snake; the first step towards convertibility - the European Payments Union; the Bretton Woods system in the 1960s - stability and crises; an early attempt at monetary union - the Werner Plan; the "snake" 1972-8; lessons from the first thirty years of European monetary integration; references; the making of the EMS; the Schmidt-Giscard initiative - political and economic inspirations; the Bremen and Brussels European Councils; the European Monetary Fund; reference. Part 2 The European monetary system: the working of the EMS; criteria for a chronology; a turbulent start 1979-83; a calmer intermediate phase - March 1983-January 1987; an EMS without realignments; summary; analytical issues - a critical appraisal of the EMS; a zone of monetary stability - exchange-rate stability and convergence to price stability?; the EMS, a disciplinary device?; the EMS, a shock absorber mechanism?; symmetry and asymmetry in the EMS; fiscal policy in the EMS; a summary assessment of the EMS; current issues for the EMS the transition towards monetary union; the EMS without capital controls - a potential for speculative attacks?; the EMS and financial market intergration - a potential for currency substitution?; can too much exchange-rate stability delay covergence in inflation?; the fiscal implications of price stability; is there a need for a maxi realignment; the effects of German unification on exchange rates in Europe; a widening of membership - Spain and the United Kingdom; a new EMS?; the Ecu - motor or expression of European monetary integration; origins and definition of the Ecu; the official Ecu - a dead end?; the (private) Ecu in financial markets; the Ecu versus the basket; the future of the Ecu;why monetary union? costs and benefits; what is the meaning of monetary union? irrevocably fixed exchange rates versus a common currency; costs and benefits of irrevocably fixed exchange rates; additional benefits from a common currrency; regional distribution of costs and benefits; summary evaluation of the economic costs and benefits of monetary union.