The Ways to Monetary Union

Testo disponibile solo in lingua inglese.
The future of Europe's monetary unification is analysed in the light of the experience of the past twenty-five years and in the perspective of what is considered to be a necessary revision of the present strategy. Pegging exchange rates and trying to impose uniform convergence criteria on all European countries will not only produce undesirable consequences, but will also bring us no closer to a common European currency. This outcome depends on whether we adopt a monetary constitution or not – on whether, that is, we succeed in drawing up a set of rules of monetary conduct capable of providing adequate guarantees against European monetary mismanagement. In other words, a monetary rule is a necessary precondition for a common European currency. If, on the other hand, money continues to be used as an instrument of discretionary policy, monetary unification is unlikely to be achieved.