DP591 The Currency Reform as the Last Stage of Economic and Monetary Union: Some Policy Questions

Author(s): Alberto Giovannini
Publication Date: October 1991
Keyword(s): Currency Reform, Exchange Rate Devaluation
JEL(s): E42, F33, F36, G15, G20
Programme Areas: International Macroeconomics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=591

The paper discusses the policy problems involved in replacing several national currencies with a single currency in a monetary union. While these problems are of general interest, the analysis is motivated by the plan for Economic and Monetary Union among the members of the European Community. The issues discussed include the choice of conversion rates and the effects of exchange rate devaluations at the time of the monetary reform.