Economics of monetary union / Paul De Grauwe.

Format:

Book

Author/Creator:

Grauwe, Paul de, author.

Contributor:

Bruce Alan Miller Book Fund.

Language:

English

Subjects (All):

Monetary unions--European Union countries.

Monetary unions.

European Union countries.

Monetary policy--European Union countries.

Monetary policy.

European Monetary System (Organization).

Physical Description:

x, 291 pages : illustrations ; 25 cm

Edition:

Thirteenth edition.

Place of Publication:

Oxford : Oxford University Press, 2020.

Contents:

Machine generated contents note: pt. 1 Costs and benefits of monetary union

1. The costs of a common currency

Introduction

1.1. Shifts in demand (Mundell)

1.2. Monetary independence and government budgets

The UK scenario

The Spanish scenario

1.3. Asymmetric shocks and debt dynamics

1.4. Booms and busts in a monetary union

1.5. Monetary union and budgetary union

A budgetary union as an insurance mechanism

A budgetary union as a protection mechanism

1.6. Private insurance schemes

1.7. Differences in labour market institutions

1.8. Differences in legal systems

2. The theory of optimum currency areas: a critique

2.1. How relevant are the differences between countries?

Is a demand shock concentrated in one country a likely event?

Institutional differences in labour markets

Different legal systems and financial markets

Booms and busts and the nation-state

2.2. How effective are national monetary policies?

National monetary policies to correct for permanent asymmetric demand shocks

National monetary policies to stabilize business cycle shocks

Productivity and inflation in a monetary union: the Balassa-Samuelson effect

2.3. National monetary policies, time consistency, and credibility

The Barro-Gordon model: a geometric interpretation

The Barro-Gordon model in open economies

Credibility and the cost of a monetary union

2.4. Mundell once more

2.5. The cost of monetary union and the openness of countries

3. The benefits of a common currency

3.1. Direct gains from the elimination of transaction costs

3.2. Indirect gains from the elimination of transaction costs: price transparency

3.3. Welfare gains from less uncertainty

3.4. Exchange rate uncertainty and economic growth

3.5. Monetary union and trade: the empirical evidence

3.6. Benefits of an international currency

3.7. Benefits of a monetary union and the openness of countries

4. Costs and benefits compared

4.1. Costs and benefits compared

4.2. Monetary union, price and wage rigidities, and labour mobility

4.3. Asymmetric shocks and labour market flexibility

4.4. The degree of completeness of a monetary union

4.5. The trade-off between budgetary union and flexibility

4.6. Costs and benefits in the long run

4.7. Is Latin America an optimal currency area?

4.8. The next monetary union in Asia?

4.9. Monetary unions in Africa

pt. 2 Monetary union

5. The fragility of incomplete monetary unions

5.1. Fixed exchange rate regimes as incomplete monetary unions

5.2. A monetary union without a budgetary union

5.3. More bad news about bad equilibria: banking crises

5.4. More bad news about bad equilibria: automatic stabilizers

6. The transition to a monetary union

6.1. The Maastricht Treaty

6.2. Why convergence requirements?

Inflation convergence

Budgetary convergence

Exchange rate convergence (no-devaluation requirement)

Interest rate convergence

6.3. How to organize relations between the `ins' and the `outs'

7. How to complete a monetary union

7.1. The role of the central bank: lender of last resort

Risk of inflation

Fiscal consequences

Moral hazard

7.2. Consolidating government budget and debts

A strategy of small steps

7.3. Coordination of budgetary and economic policies

7.4. An omitted `deep' variable

8. Political economy of deconstructing the Eurozone

8.1. Case study: Greece

8.2. Case study: Italy unfit for the Eurozone?

8.3. Towards deconstructing the Eurozone?

8.4. The costs of deconstruction

8.5. Will the rest of the Eurozone be better off?

9. The European Central Bank

9.1. The design of the ECB: the Maastricht Treaty

9.2. Why has the German model prevailed?

9.3. The ECB: a `conservative' central bank?

9.4. Independence and accountability

9.5. The ECB: institutional framework

The institutions of the Eurozone: the Eurosystem

Is the Eurosystem too decentralized?

Should the decision-making process in the Eurosystem be reformed?

9.6. The ECB as lender of last resort

9.7. Did the ECB violate its statutes when it announced its government bond-buying programme (OMT)?

9.8. The new financial regulatory and supervisory structure in the EU: towards a banking union

A common regulatory framework

A common supervisory framework

Towards a banking union

10. Monetary policy in the Eurozone

10.1. Central banking and asymmetries of shocks

10.2. The Monetary Policy Strategy of the ECB: a description

10.3. The Monetary Policy Strategy of the ECB: an evaluation

The selection of the target

Financial stability: an additional objective?

Is there a trade-off between price stability and financial stability?

How to define and monitor financial stability?

Excessive reliance on the money stock?

Inflation targeting: a model for the ECB?

10.4. The instruments of monetary policy in the Eurozone

Open market operations

Main refinancing operations: how do these work?

QE: How does it work?

Standing facilities

Minimum reserves

10.5. The Eurosystem as lender of last resort during the financial crisis

11. Fiscal policies in monetary unions

11.1. Fiscal policies and the theory of optimum currency areas

11.2. Sustainability of government budget deficits

11.3. The argument for rules on government budget deficits

11.4. Fiscal discipline in monetary unions

11.5. Risks of default and bailout in a monetary union

11.6. The Stability and Growth Pact: an evaluation

11.7. A joint issue of common bonds

11.8. The quest for a safe asset

12. The euro and financial markets

12.1. EMU and financial market integration in Europe

The integration of money markets

The integration of bond markets

The integration of equity markets

The integration of banking sectors

12.2. Why financial market integration is important in a monetary union

12.3. Conditions for the euro to become an international currency

Structural factors

The policy environment.

Notes:

Previous edition: 2018.

Includes bibliographical references (pages 263-278) and index.

Local Notes:

Acquired for the Penn Libraries with assistance from the Bruce Alan Miller Book Fund.

ISBN:

0198849540

9780198849544

OCLC:

1119531219

Publisher Number:

99986175785