Monetary Union, Entry Conditions and Economic Reform

Monetary Union Its Costs

Commentary : Monetary Policy and the Control of Inflation

Governor Crow has given us an excellent summary of the issues and options in controlling inflation. I will focus my remarks on the application of the points that he made to the case of the Soviet Union, which I do in part because I've thought more about the Soviet Union than about the inflation problems elsewhere in Eastern Europe, but also because I think that perhaps it is in the Soviet Union...

Market Deregulation and Optimal Monetary Policy in a Monetary Union

The global crisis that began in 2008 reheated the debate on market deregulation as a tool to improve economic performance. This paper addresses the consequences of increased flexibility in goods and labor markets for the conduct of monetary policy in a monetary union. We model a two-country monetary union with endogenous product creation, labor market frictions, and price and wage rigidities. W...

Real Convergence in a Monetary Union

Since Krugman’s “Geography and Trade” it has become common knowledge among economists that the spatial consequences of “integration”, that is to say of reduced transaction costs, may be the building up of agglomerations with high productivity levels and external economies of scale (the centre) whereas the periphery is being deprived by out-migration. The authors of a recent study published by t...

Rational Idiosyncrasy and Monetary Integration

Erik Jones’s The Politics of Economic and Monetary Union is a tightly written book that provides a dense analytical overview of the issues surrounding economic and monetary integration within the European Union (EU). The jacket describes Jones’s book as a textbook, which seems apt given its basic structure and comprehensiveness. Indeed, the scope is impressive for such a short work. Jones begin...