European Monetary Union: Recent evolution and perspectives
Abstract
This paper discusses the uniqueness and the stability of the proposed model
for the European Monetary Union – EMU, pointing out some of the difficulties faced in its
implementation and the chances of surpassing them. It also suggests how all the points of
European monetary integration – central bank independence, balanced budget and stability
of the exchange rate within a certain band of fluctuation – are sustained upon the proposition
that economy founds auto-adjustment since there is flexibility of wages and prices
and the State’s intervention remains as short as possible. Thus, the need of convergence of
economic and financial EMU’s criterion and the sufficiency of its achievement to a greater
development of Europe in face of other countries bring the discussion back to the theoretical
paradigm.
JEL Classification: F45; F42; F33.
Keywords: European Union monetary union economic integration Euro