欧洲货币一体化【英文】

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EMS - Three Key Elements

Exchange Rate Mechanism

mutual unlimited support – FX market interventions very short (45D), short (3M) and midterm (2-5Y) loans European Monetary and Cooperation Fund (1973) stable but adjustable ER some limitations divergence indicator
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EMS - Three Key Elements

parity grid – bilateral central parities to the ECU

narrow fluctuation band (± 2,25 % or ± 6,0 %) unanimous agreement on realignments
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European Monetary System (1979 - 1999)
solution to the end of Bretton Woods System to eliminate competitive devaluations different inflation rates giving up a monetary autonomy, but possible to leave
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Optimum Currency Areas
EC/EU as an OCA ? NOT, only USA EU countries have different structures, different goals
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Werner’s Report (1970-1974)
defining the attributes of the economic and monetary union irrevocable convertibility of central parities (pegged exchange rates) centralized system of monetary authorities macroeconomic policy cooperation as precondition for successful economic integration steps to take - free movement of goods, services, capital and labour sequencing in monetary union creation, time horizon – 1980 st 1 stage (1971-1973) – stabilization of margins of exchange rates not supported by France
European Monetary Integration I.
Dana Viktorová
History of European Monetary Integration
Bretton Woods System (1944 – 1971) central parities against USD, GBP, gold pegged exchange rates (± 1,0 %). independent monetary policy Triffin’s motion of the European Reserve Fund (1959) st 1 step towards single monetary policy
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5Fra Baidu bibliotek
Optimum Currency Areas
six OCA criteria 1. labour mobility (Mundell) 2. production diversification (Kenen) 3. openness (McKinnon) 4. fiscal transfers 5. homogenous preferences 6. commonality of destiny OCA index
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European Exchange Rate Arrangement
Snake in Tunnel (1972 - 1973) fluctuation band around USD (± 1,125 %) compared with (± 2,25 %) of the IMF members worm in snake in tunnel – B + NL (± 0,5 %) speculative pressures, oil shock, economic divergence challenges for the philosophy of monetary integration
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History of European Monetary Integration
European Commission’s Action Program (1962) suggestions for monetary integration pegged exchange rates European reserve currency adoption Committee of Central Banks Governors (1964) support the adoption of pegged exchange rates