DP556 Brussels on a Single Money

Author(s): Jacques Melitz
Publication Date: July 1991
Keyword(s): European Monetary Union, Exchange Rate Regime, Fiscal Federalism, Optimum Currency Area
JEL(s): 430, 431, 432
Programme Areas: International Macroeconomics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=556

This review article discusses the recent document titled `One Market, One Money' in which the European Commission develops its case for European monetary union. After examining the monetary issues, the article focuses on the reasons for the Commission's very worried attitude toward fiscal policy autonomy. The closing section considers the problem of the transition to a single money. Attention is also drawn to the issue of a lender of last resort.