This book provides an overview as well as the latest research on currency unions - geographical areas throughout which a single currency circulates as the medium of exchange. The issues discussed are central to debates on economic and monetary union in Europe, and the future of Eastern Europe. In addition to a specially written survey chapter by the editors, it contains previously unpublished contributions by leading researchers in the field, discussing real and potential currency unions in the United States, the former Soviet Union, Europe, and Africa.
• Extremely topical - deals with the issues behind Economic and Monetary Union and the Maastricht Treaty in Europe • Contains the latest research by respected names and a comprehensive survey chapter which will be of particular use to students • Comparable to the very successful CEPR collaborative volumes on Europe and '1992'
List of contributors; Preface; Part I. Assessing the Literature: 1. Currency unions: a survey of the issues Paul R. Masson and Mark P. Taylor; Part II. Existing Currency Unions: 2. Costs and benefits of economic and monetary union David Gros; 3. Private capital markets and adjustment in a currency union Andrew Atkeson and Tamim Bayoumi; 4. The economics of the CFA franc zone James M. Boughton; Part III. Is Europe an Optimum Currency Area?: 5. Is Europe an optimum currency area? Paul de Grawe and Wim Vanhaverbeke; 6. Labor markets and European monetary unification Barry Eichengreen; 7. European excess stock returns and capital market integration Patricia Fraser and Ronald MacDonald; Part IV. EMU: The Road From Maastricht: 8. The European system of central banks after Maastricht Charles A. E. Goodhart; 9. A European money demand function Michael J. Artis, Robin C. Bladen-Hovell and Wenda Zhang; 10. Monetary union and fiscal union Jürgen von Hagen; Index.