Tomann Monetary Integration in Europe

The European Monetary Union after the Financial Crisis
2. Auflage 2017
ISBN: 978-3-319-59247-3
Verlag: Springer Nature Switzerland
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 253 Seiten

Reihe: Studies in Economic Transition

This book provides a fully revised and up-to-date analysis of the Economic and Monetary Union (EMU). With four entirely new chapters on responses to the financial crisis and the debate on reform options, Tomann assesses the EMU in comparison with other currency regimes through the adoption of a historical analysis. The book discusses in detail basic issues with currency and comprehensively analyzes monetary policy, highlighting problems of policy coordination. Tomann explores new monetary institutions that have been established in response to the financial crisis, before addressing long-term issues and reviewing reform proposals. By focusing on monetary issues the book offers a better understanding of macroeconomic policies and international policy cooperation, and, by extension, provides a thorough economic assessment of the EMU as an institution as it stands today.

Horst Tomann is Professor Emeritus at Freie University Berlin, Germany. He previously held the Jean Monnet Professorship for European Economic Policy at Freie University and was a staff member at the German Council of Economic Experts. He has had several appointments as Visiting Professor, among others at the University of Pennsylvania (Wharton School), USA, and the University of Birmingham, UK. He is the co-editor of Palgrave Macmillan's book series Studies in Economic Transition, and the Palgrave Dictionary of Emerging Markets and Transition Economics, both alongside Jens H?lscher.

Autoren/Hrsg.

Tomann, Horst

Inhaltsverzeichnis

1;Preface;7
2;Contents;9
3;List of Abbreviations;13
4;List of Figures;15
5;List of Tables;16
6;1: The History of Monetary Integration in Europe;17
6.1;1.1 The European Payments Union (EPU), 1950–58;19
6.2;1.2 The Bretton Woods System, 1944–71;22
6.3;1.3 A Currency System of ‘No Commitments’, Since 1973;25
6.4;1.4 The European Monetary System (EMS), 1979–98;28
6.5; Notes;33
6.6;Further Reading;33
7;Part I: The Functioning of the Monetary Union;34
7.1;2: Theory of Optimum Currency Areas;35
7.1.1;2.1 Wage Rigidity and Money Illusion;38
7.1.2;2.2 The Credibility of a Common Currency;42
7.1.2.1; Conclusion;43
7.1.3;2.3 Effects of Collusion in the Labour Market;44
7.1.4; Notes;49
7.1.5;Further Reading;49
7.2;3: The Economic and Monetary Union: Institutions and Credibility;50
7.2.1;3.1 The New Money Constitution;51
7.2.2;3.2 Independence, Accountability and Transparency;57
7.2.2.1; Independence;58
7.2.2.2; Accountability;60
7.2.2.3; Transparency;61
7.2.3;3.3 The EMU as a Regime of Low Inflation;62
7.2.4; Notes;66
7.2.5;Further Reading;66
7.3;4: Conventional Monetary Policy of the ECB;67
7.3.1;4.1 How Monetary Policy Affects Expenditures and Prices (Transmission Process);67
7.3.2;4.2 Concepts of Conventional Monetary Policy;74
7.3.2.1; Economic Analysis;79
7.3.2.2; Monetary Analysis;80
7.3.3;4.3 The Performance of the Eurosystem;81
7.3.3.1; Evaluation;89
7.3.4; Notes;91
7.3.5;Further Reading;91
7.4;5: Fiscal Policy Coordination and the Stability and Growth Pact;92
7.4.1;5.1 How Fiscal Policy Affects Aggregate Demand;93
7.4.2;5.2 Is there a Need to Coordinate National Fiscal Policies?;96
7.4.3;5.3 The Stability and Growth Pact;98
7.4.4;5.4 Fiscal Policies in the EMU;103
7.4.5;5.5 Assessment;108
7.4.6;5.6 Conclusion;113
7.4.7; Notes;114
7.4.8;Further Reading;115
7.5;6: The EMU and the Wage Bargain;116
7.5.1;6.1 How the Wage Bargain Affects Employment and Real Wages;118
7.5.2;6.2 The Case for a European Wage Standard;126
7.5.3;6.3 Interaction of Monetary Policy and the Wage Bargain;136
7.5.4;6.4 Conclusion;141
7.5.5; Notes;142
7.5.6;Further Reading;143
8;Part II: Responses to the Financial Crisis;144
8.1;7: The ECB’s Unconventional Monetary Policy;145
8.1.1;7.1 Emergence of the Financial Crisis in Europe;146
8.1.2;7.2 The Role of Monetary Policy;148
8.1.3;7.3 Asset Purchases in Focus;152
8.1.4;7.4 Assessment;154
8.1.4.1; Risks and Side Effects;156
8.1.4.2; Central Bank Independence;158
8.1.5;7.5 Conclusion;159
8.1.6; Notes;160
8.1.7;Further Reading;160
8.2;8: The Burden of Public Debt and the European Stability Mechanism;161
8.2.1;8.1 Keynes’s Tentative Judgements;162
8.2.2;8.2 The Problem of Stock-Flow Consistency in Monetary Economics;166
8.2.3;8.3 The European Stability Mechanism (ESM);171
8.2.4;8.4 Conclusion;175
8.2.5; Notes;175
8.3;9: The Banking Union and Financial Stability;177
8.3.1;9.1 How Bank Intermediation Works;178
8.3.2;9.2 Long-run Solutions: Clearing Bank Balance Sheets;180
8.3.3;9.3 The Functioning of the European Banking Union;182
8.3.4;9.4 Conclusion;187
8.3.5; Notes;188
8.3.6;Further Reading;189
9;Part III: Long-term Issues;190
9.1;10: Real Convergence in a Monetary Union;191
9.1.1;10.1 Long-term Effects of a Monetary Union;192
9.1.2;10.2 Wage and Price Adjustments and the Catch-up;195
9.1.3;10.3 Real Interest Rates and Growth Divergence;199
9.1.4;10.4 Policy Implications;201
9.1.5; Notes;204
9.1.6;Further Reading;204
9.2;11: The New European Monetary System;205
9.2.1;11.1 Basic Choices for Pre-Ins;206
9.2.2;11.2 Features of ERM II;211
9.2.3;11.3 The Performance of Monetary Convergence (Entry Strategies);215
9.2.4; Notes;220
9.2.5;Further Reading;220
9.3;12: The Debate on Reform Options;221
9.3.1;12.1 The Report of the Five Presidents;223
9.3.2;12.2 A European Unemployment Insurance;227
9.3.3;12.3 A European Treasury;230
9.3.4;12.4 Rebalancing Monetary and Fiscal Policies;234
9.3.5; Notes;236
9.3.6;Further Reading;238
10;Bibliography;239
11;Index;246