This book provides a comprehensive account and analysis of the plan
for European monetary union contained in the Maastricht Treaty. The
provisions of the treaty itself are examined, showing how they
evolved, what must be done to implement them, and some of the
problems they will pose. Kenen goes far beyond the treaty, however,
to survey and adapt recent research by economists on the benefits
and costs of monetary unions, the conduct of monetary policy, and
the consequences of large public deficits and debts. The European
exchange-rate crises of 1992 and 1993 are analyzed, as well as
their impact on the prospects for monetary union and the problems
they pose for implementation of the Maastricht Treaty. The author
makes specific proposals to handle the transition to a single
currency, integrate the existing central banks into a single
system, and modify parts of the treaty itself. The implications of
European monetary union for the international monetary system in
the mid-to-late 1990s are also considered.
General
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