518 - EMU: a story of success if the rules of the game are followed

Wetenschappelijke publicatie
Date 6 September 1997

After a brief description of the post-war European integration, the report deals with the question of justification of EMU according to the optimum currency area theory as well as with the potential gains of the European currency. The 'rules of the game' are split up in rules for the short term (strict interpretation of the convergence criteria and fulfilment of the stability pact) and rules for the long term (deepening of the political structure of the European Union). Finally some lessons are drawn for the financial markets in South-East Asia. The report has been presented at the Federal Reserve Bank of San Francisco on the occasion of a meeting about financial markets of South-East Asia held in September 1997.