This paper is divided into three main sections. The first considers the implications of the Maastricht treaty for the external economic dimension, concentrating mainly on the inter-relationships between, and allocations of responsibility for, the decisions within the EC on the main policy issues, monetary policy, the exchange rate regime and fiscal policy. The second section considers the non-strategic external economic implications of EMU and the move to a single currency, the Ecu, issues such as the effects on trade finance, reserves, seigniorage and the net external demand for Ecu assets. The third section discusses how the establishment of EMU may affect the workings of the world economy, the exchange rate regime and coordination, such as it may be, among the main players.
