The concept of an international monitory system has evolved during the initial half of twentieth century as a result of the 1930 financial crisis and the problems faced by the countries. The idea of the system is that it provides appropriate means for different nationalities…
Download file to see previous pages...
When the concept of European Union was initially proposed, people thought it as a simple regional cooperation to exploit the possibilities of globalization. The concept of Economic and Monitory Union (EMU) in Europe was discussed earlier, but it failed to materialize because of various reasons. “The immediate impulse that led to the relaunch of EMU in the late 1980s was in the prospect of the completion of the Single Market”. “On December 10, 1991, at the Maastricht summit, the member states of the European Communities adopted the treaty on European Union. It amends and extends the 1957 treaty of Rome which established the European Economic Community”. This paper analyses the economic and monitory unions in Europe. The economic and monitory union (EMU) in Europe was established in 1999. The EMU has two components; an exchange rate union, and complete convertibility. Moreover, there are a number of alternative sets of monetary arrangements that are in theory consistent with monetary union such as currency union, exchange rate union, free inter-circulation union, parallel currency union etc. The necessities of a single currency in the integration process forced EU to think in terms of a single currency under the control of EU rather than the individual member countries. EU is responsible for determining the exchange rates, interest rate and other monitory polices. Individual countries do not have the authority to print more currencies or Euros than prescribed by the EU.
...Download file to see next pagesRead More
Cite this document
(“Economic and Monetary Union in Europe Assignment”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1419635-economic-and-monetary-union-in-europe
(Economic and Monetary Union in Europe Assignment)
“Economic and Monetary Union in Europe Assignment”, n.d. https://studentshare.org/macro-microeconomics/1419635-economic-and-monetary-union-in-europe.
The different countries that are a part of the European Union have a different status in terms of economy, politics and the social well – being within the nations. The differences between second world countries have created a gap in the past decade, specifically in terms of economics.
Development within the European Union of the Second World Countries. This paper defines and identifies Second World countries within the European Union and focus the discussion on the process of the development these countries went through. All ten Second World countries (Bulgaria, the Czech Republic, Estonia, Latvia, Poland, Romania, Slovakia, Cyprus, Malta and Slovenia) in the EU had gone tremendous changes in their political, economic and social way of life that in the eyes of the global market, these countries are still in the process of transition and can be also classified as Transition countries.
Discussion of the prospects for European monetary union has often focused on whether the European Union is an optimal currency area for Britain and, if not, how long it might take to become one and whether there might be unacceptable costs to some part of the territory along the way.
Under a permanent fixed exchange rate regime, it has been simultaneously iterated that nations reflecting the practice are provided greater price stability than if there is a fluctuating exchange rate between participating nations. This simply means that shocks in different regions within the bloc can cancel each other out and whatever disturbance is set to occur, it becomes relatively smaller since the area is increased (Salvatore 2001).
Monetary policy on the other side refers to actions that can be taken by the central bank to either slow or ignite the economy. Both Fiscal and monetary policies have a way of affecting the economy either positively or negatively. With reference to the
They include the council, court of justice, the European commission, the central bank, European parliament and the court of auditors (Cini and Borragán 2010, p.34).
These institutions are independent and also
2. IMF has significant influence in the developing economies where it assists in development agenda. However, it is important to note that it has always come up with some economic restructuring policy that affects the citizens.IMF have in some instances
The deepest manifestation of economic integration, an economic union adds to a typical market the need to fit various key policy ranges. Most outstandingly, economic unions oblige formally composed financial and monetary policies and work market, territorial improvement, transportation and modern policies.