Hostname: page-component-586b7cd67f-gb8f7 Total loading time: 0 Render date: 2024-11-25T14:07:39.022Z Has data issue: false hasContentIssue false
  • English
  • Français

European Monetary Union and Macroeconomic Policy in Southern Europe: the Case for Positive Integration

Published online by Cambridge University Press:  28 November 2008

Heather D. Gibson  and
Euclid Tsakalotos
Heather D. Gibson
Affiliation:
Economics, University of Kent
Euclid Tsakalotos
Affiliation:
Economics, University of Kent
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper discusses the prospects of Greece, Portugal and Spain completing stage 1 of the Delors plan. Much of the academic literature on the removal of capital controls seeks to extend the experience of the ERM countries in the 1980s. We argue that its applicability for southern Europe is not straightforward, because these countries have not had the same experience of operating the ‘old’ ERM with capital controls, and examine the implications for these countries of removing capital controls for macroeconomic, and especially, fiscal policy. Intermediate institutional arrangements may be necessary and we consider how EC-wide measures may help these countries in this transitional phase. For the next phase of European integration, the focus of the EC should be on developing appropriate public institutions at the European level to promote positive integration.

Type
Articles
Information
Journal of Public Policy , Volume 11 , Issue 3 , July 1991 , pp. 249 - 273
Copyright
Copyright © Cambridge University Press 1991

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Alogoskoufis, G. S. (1990) On relative shocks and fiscal policies in a monetary union, Centre for Economic Policy Research Discussion Paper, no. 423, 06.Google Scholar
Artis, M. J. (1990) ‘The European Monetary System: A Review of the Research Record’, in Bird, G. (ed.).Google Scholar
Artis, M. J. and Taylor, M. P. (1988) ‘Exchange rates, interest rates, capital controls and the European Monetary System: assessing the track record’, in Giavazzi, et al. , (eds.).Google Scholar
Artis, M. J. and Taylor, M. P. (1990) ‘International Financial Stability and the Regulation of Capital Controls’, in Bird, G. (ed.).Google Scholar
Bacchetta, P. (1992) ‘Abolishing Capital Controls in Spain: a challenge for the nineties’, to be published in Gibson, H. D. and Tsakalotos, E., Economic Integration and Financial Liberalisation: Prospects for Southern Europe, (London: Macmillan).Google Scholar
Bacchetta, P. and Caminal, R. (1990) ‘Optimal seigniorage and financial liberalisation’, mimeo, 06.Google Scholar
Backus, D. and Driffill, J. (1985) ‘Inflation and Reputation’, American Economic Review.Google Scholar
Barro, R. and Gordon, D. (1983) ‘A positive theory of monetary policy in a natural rate model’, Journal of Political Economy, 91, 4, 589–610, 08.CrossRefGoogle Scholar
Basevi, G. (1988) ‘Liberalization of capital movements in the European Community: A proposal, with special reference to the case of Italy’, European Economy, 05, 36, 71–84.Google Scholar
Bird, G. (1990) (ed.) The International Financial Regime, (Guildford: Surrey University Press / Academic Press).Google Scholar
Braga de Macedo, J. (1990a) ‘Financial Liberalisation and Exchange Rate Policy in the Newly Integrating Countries of the European Community’ in Ferri, P.Prospects for the European Monetary System, (London: Macmillan).Google Scholar
Braga de Macedo, J. (1990b) External Liberalization with Ambiguous Public Response: the experience of Portugal, Centre for Economic Policy Research Discussion Paper, no. 378, 02.Google Scholar
Branson, W. H. (1990) Financial Market Integration, Macroeconomic Policy and the EMS, Centre for Economic Policy Research Discussion Paper, no. 385, 03.Google Scholar
Cassola e Barata, N. (1992) ‘Portugal and the European Monetary System’, to be published in Gibson, H. D. and Tsakalotos, E., Economic Integration and Financial Liberalisation: Prospects for Southern Europe, (London: Macmillan).Google Scholar
Claasen, E. and Wyplosz, C. (1982) ‘Capital controls: some principles and the French experience’, Annales de L'insee, 07/12.CrossRefGoogle Scholar
Cohen, D. and Wyplosz, C. (1989) ‘The European Monetary Union: An agnostic evaluation’, in Bryant, R. C. et al. (eds.), Macroeconomic Policies in an interdependent world, The Brookings Institution, IMF, Centre for Economic Policy Research.Google Scholar
Cukierman, A., Edwards, S. and Tabellini, G. (1990) Seigniorage and Political Instability, Centre for Economic Policy Research Discussion Paper, no. 381, 02.Google Scholar
Davies, G. (1989) Britain and the European Monetary System, Institute for Public Policy Research, Economic Study, no. 1.Google Scholar
Davies, G., Currie, D., MacKinnon, N. and Brunskill, I. (1990, Davies, et al. ) European Monetary Union, Institute for Public Policy Research, Economic Study, no. 4.Google Scholar
de Boisseau, C. (1988) ‘Financial Liberalization and the evolution of the EMS’, European Economy, 05, no. 36.Google Scholar
de Cecco, M. and Giovannini, A. (1989, eds.) A European Central Bank?, (Cambridge: Centre for Economic Policy Research, Cambridge University Press).CrossRefGoogle Scholar
de Grauwe, P. (1990) ‘The Costs of disinflation and the European Monetary System’, Open Economies Review, 1, 2, 147–74.CrossRefGoogle Scholar
Dornbusch, R. (1988) ‘The European Monetary System, the dollar and the Yen’, in Giavazzi, et al. , eds.CrossRefGoogle Scholar
Dornbusch, R. (1989) ‘Ireland's Disinflation’, Economic Policy, 04Google Scholar
Dornbusch, R. (1990) Two Track EMU. Now!', in Britain and EMU, Centre for Economic Performance, LSE.Google Scholar
Drazen, A. (1989) ‘Monetary Policy, capital controls and seigniorage in an open economy’ in de Cecco, M. and Giovannini, A. (eds.) A European Central Bank?, (Cambridge: Centre for Economic Policy Research, Cambridge University Press).Google Scholar
Driffill, J. (1988) ‘The stability and sustainability of the European Monetary System with perfect capital markets’, in Giavazzi, et al. , eds.CrossRefGoogle Scholar
Eichengreen, B. (1990a) ‘Currency Union’, Economic Policy, 04, 118–166.Google Scholar
Eichengreen, B. (1990b) Costs and Benefits of European Monetary Unification, Centre for Economic Policy Research Discussion Paper, no. 453, 09.Google Scholar
Emerson, M. (1990) ‘Aspects of the Economics of EMU’, European Economic Association, 5th Annual Conference, Lisbon.Google Scholar
Epstein, G. A. and Schor, J. B. (1989) ‘Structural determinants and economic effects of capital controls in the OECD’, in Banuri, T. and Schor, J. B., Financial Openness and National Autonomy (WIDER).Google Scholar
Fischer, S. (1982) ‘Seigniorage and the case for a national money’, Journal of Political Economy, 90, 2.CrossRefGoogle Scholar
Flood, R. P. and Garber, P. M. (1984) ‘Collapsing exchange rate regimes: some linear examples’, Journal of International Economics.CrossRefGoogle Scholar
Giavazzi, F. (1990) ‘The EMS: Lessons from Europe and Perspectives in Europe’, in Ferri, P. (ed.), Prospects for the EMS, (London: Macmillan).Google Scholar
Giavazzi, F. and Giovannini, A. (1989) Limiting Exchange Rate Flexibility: The European Monetary System, (Cambridge, Mass.: MIT Press).Google Scholar
Giavazzi, F., Micossi, S., and Miller, M. (1988, Giavazzi, et al. eds.) The European Monetary System, (Cambridge: Centre for Economic Policy Research, Cambridge University Press).CrossRefGoogle Scholar
Giavazzi, F. and Spaventa, L. (1990) The ‘New’ EMS, Centre for Economic Policy Research Discussion Paper, no. 369, 01.Google Scholar
Gibson, H. D. (1989) The Eurocurrency Markets. Domestic Financial Policy and International Instability, (London: Macmillan).CrossRefGoogle Scholar
Gibson, H. D. and Tsakalotos, E. (1990) ‘Capital Flight and Financial Liberalisation: a study of five European countries’, European Economic Association, 5th Annual Conference,Lisbon.Google Scholar
Gibson, H. D. and Tsakalotos, E. (1992a) ‘Domestic Financial Liberalisation in Southern Europe’, to be published in Gibson, H. D. and Tsakalotos, E., Economic Integration and Financial Liberalisation: Prospects for Southern Europe, (London: Macmillan).CrossRefGoogle Scholar
Gibson, H. D. and Tsakalotos, E. (1992b) ‘The removal of capital controls, 1992 and the financial sector’, to be published in Gibson, H. D. and Tsakalotos, E., Economic Integration and Financial Liberalisation: Prospects for Southern Europe, (London: Macmillan).CrossRefGoogle Scholar
Goodhart, C. E. A. (1990) ‘Fiscal Policy and EMU’, in Britain and EMU, Centre for Economic Performance, LSE.Google Scholar
Hansen, E. (1990) ‘Appendix to Goodhart, 1990’ in Britain and EMU, Centre for Economic Performance, LSE.Google Scholar
Helm, D. and Smith, S. (1989a) ‘The Assessment: Economic Integration and the Role of the European Community’, Oxford Review of Economic Policy, summer, 5, 2.CrossRefGoogle Scholar
Helm, D. and Smith, S. (1989b, eds.) The Economic borders of the state, Oxford, OUP.Google Scholar
Johnston, R. B. (1983) The Economics of the Euro-Market: history, theory and policy, (London:Macmillan).CrossRefGoogle Scholar
Kenen, P. (1988) ‘A new phase in the EMS’, Panel Discussion in Giavazzi, et al. , eds., 388–92.Google Scholar
Krugman, P. (1979) ‘A model of Balance-of-Payments Crisis’, Journal of Money, Credit and Banking, 08.Google Scholar
Krugman, P. (1987) ‘Economic Integration in Europe: Some Conceptual Issues’, in Padoa-Schioppa, T. (ed.), Efficiency, Stability and Equity, (Oxford: OUP).Google Scholar
Layard, R. (1990) ‘Wage bargaining and EMU’, in Britain and the EMS, Centre for Economic Performance, LSE.Google Scholar
MacDougall Committee Report (1977) ‘Report of the study group on the role of public finance in European integration’, Commission of the European Community, Economic and Financial Series, no 13, vols 1 and 2, Brussels.Google Scholar
Mundell, R. (1961) ‘A theory of optimal currency areas’, American Economic Review, 53, 657–64.Google Scholar
Obstfeld, M. (1990) ‘Comment on Eichengreen’, Economic Policy, 04, 166–69.Google Scholar
Odling-Smee, J. and Riley, C. (1985) ‘Approaches to the PSBR’, National Institute Economic Review, no. 113.CrossRefGoogle Scholar
Padoa-Schioppa, T. (1988) ‘The European Monetary System: a long-term view’, in Giavazzi, et al. , eds., 369–384.CrossRefGoogle Scholar
Pagano, M. (1989) ‘Comment on Drazen’, in de Cecco, M. and Giovannini, A., A European Central Bant:?, (Cambridge: Centre for Economic Policy Research, Cambridge University Press).Google Scholar
Roubini, N. and Sachs, J. (1989) ‘Government spending and budget deficits in the industrial countries’, Economic Policy, 04.CrossRefGoogle Scholar
Sachs, J. and Wyplosz, C. (1986) ‘The Economic Consequences of President Mitterrand’, Economic Policy, no. 2.CrossRefGoogle Scholar
Sargent, T. and Wallace, N. (1981) ‘Some unpleasant monetarist arithmetic’, Federal Reserve Bank of Minneapolis Quarterly Review.Google Scholar
Spaventa, L. (1988) ‘Introduction: Is There a Public Debt Problem in Italy?’, in Giavazzi, F. and Spaventa, L. (eds.), High Public Debt: the Italian Experience, (Cambridge: Centre for Economic Policy Research, Cambridge University Press).Google Scholar
Spaventa, L. (1990) ‘The Political Economy of European Monetary Integration’, Banca Nazionale del Lavoro Quarterly Review.Google Scholar
Steinherr, A. and de Schrevel, G. (1988) ‘Liberalization of financial transactions in the Community with particular reference to Belgium, Denmark and the Netherlands’, European Economy, 05, 36, 115–147Google Scholar
Stournaras, Y. (1992) ‘The road to EMU: prospects for Greece’, to be published in Gibson, H. D. and Tsakalotos, E., Economic Integration and Financial Liberalisation: Prospects for Southern Europe, (London: Macmillan).Google Scholar
Thygesen, N. (1988) ‘Introduction’ in Giavazzi, et al. , eds.CrossRefGoogle Scholar
Thygesen, N. (1990) ‘From the European Monetary System to Economic and Monetary Union – How and Why?’, Open Economies Review, 1, 2, 201–227.CrossRefGoogle Scholar
Tobin, J. (1978) ‘A proposal for international monetary reform’, Eastern Economic Journal, 14, 153–9.Google Scholar
Tsakalotos, E. (1991) Alternative Economic Strategies: the case of Greece (Avebury, Academic Publishing Group).Google Scholar
Wyplosz, C. (1986) ‘Capital Controls and Balance of Payments Crises’, Journal of International Money and Finance, 5, 06, 167–79.CrossRefGoogle Scholar
Wyplosz, C. (1988) ‘Capital Flow Liberalization and the EMS: A French Perspective’, European Economy, 05, 36, 85–113.Google Scholar