The Euro, 2nd Edition

Book Description

The euro is the national currency of eleven European countries from 1 January 1999. The change is truly a revolution. But it will not be until 2002 that euro cash - notes and coin - comes into circulation. This three-year 'transition' period raises many fascinating issues regarding the operation of financial markets, economies, companies, governments and the consumer. The second edition of The euro takes an expert look at the issues involved.

Written by an internationally renowned team of expert contributors from the worlds of banking, finance, economics, regulation, accountancy and business consultancy, the second edition of The Euro addresses all the key issues involved in the final implementation of Europe's new currency.

Amongst the issues of crucial importance addressed in the book are:

* Will the euro be a strong or a weak currency - will it rival the US dollar?

* Can Europe's economies really work properly with the 'one size fits all' approach to interest rates?

* Will the long-term benefits of the euro outweigh the short-term pain which has been endured as a result of higher taxes and government spending cuts?

* Are companies ready to cope with the euro?

* Will the consumer benefit?

* To what extent will a 'United States of Europe' be created?

* How can Europe's citizens cope with the dramatic changes brought about by the combination of the euro plus the IT revolution and Europe's ageing population?

The Investor described the first edition as "a work of reference - although an unusually readable one" and this approach ahs been continued in this fully revised and updated new edition. The skill of the team of expert contributors ("Europe's most highly-regarded analysts" according to City Life) is in their ability to present the complicated issues that arise out of the single European currency in a style that is both highly informative and accessible, making this new edition once again required reading for all readers who need or want to know what will happen to Europe's economies in the future.

The euro, second edition, is published under the auspices of the European Bond Commission of EFFAS (the European federation of Financial Analysts' Societies). EFFAS was established in 1962 and is a pan-European representative group of investment analysts from some seventeen different countries. The European Bond Commission is a standing committee of EFFAS responsible for matters relating to fixed income securities.

Reviews of the first edition:

".. what has been sadly lacking in the thousand of column inches that have been written about monetary union over recent weeks and months is a detailed analysis of what it will actually mean in practice. This is what The euro provides... for the reader who is keen to find out more about the issues that lie behind the development of the single currency. The euro will make matters considerably easier to understand."

The Investor

"Written to appeal to finance and business readers, it is a comprehensive, readable guide to the likely consequences of this momentous and radical change."

Lavoisier Management

"The EFFAS-European Bond Commission has obtained the views of Europe's most highly-regarded analysts. The results are startling."

City Life

"...the roll call of experience is longer and more illustrious than a Cruft's winner's pedigree... Anyone searching for the meat-and-potatoes lowdown on the single currency should look no further than The euro."

Chartered Banker

"Tim Congdon argues coolly that the euro plan simply will not work. He likens the euro programme to building a house with different sized bricks (dual pricing, parallel currencies), without a roof (no clear redenomination of currencies) and on a bog (planning documents are incoherent about money as a means of exchange). More rethinking for Chancellor Brown?"

Evening Standard

Customer Reviews:

Reprint quickly Pls........1998-07-16

Being an outsider of European Intergration as asian, I can catch layout picture from this book about the EURO system. Even it will bring new future in major regions on focus economy and business. This book is not under academical theories only but also on practical issues. And the writing is not hard to read for non-inglish speaker.

Good book for understanding the economic impact of Euro.......1998-02-20

It's a book about EURO which you'll find interesting. It is actually a collection of articles written by various industry specialists. It examines the impact of EURO on many areas like Bond Market, Equity Market & foreign exchange rate etc, it also illustrates the role of ECB.

It's recommended to students who want to have a quick grasp of knowledge in the EMU. It contains many graphs and diagrams which can raise your speed of reading. However, the impact of Euro on Equity market is a little bit too short.

Book Description

The remarkable story of the Renaissance's preeminent financiers.

Their name is a byword for immense wealth and power, but before their renown as art patrons and noblemen the Medicis built their fortune on banking—specifically, on lending money at interest. Banking in the fifteenth century, even at the height of the Renaissance, meant running afoul of the Catholic Church's prohibition against usury. It required more than merely financial skills to make a profit, and the legendary Medicis—most famously Cosimo and Lorenzo ("the Magnificent")—were masterly in wielding the political, diplomatic, military, and even metaphysical tools that were needed to maintain their family's position.

In this brisk and witty narrative, Tim Parks uncovers the intrigues, dodges, and moral qualities that gave the Medicis their edge. Vividly evoking the richness of the Florentine Renaissance and the Medicis' glittering circle, replete with artists, popes, and kings, Medici Money is a brilliant look into the origins of modern banking and its troubled relationship with art and religion. 14 illustrations.

Customer Reviews:

The Birth of Renaissance.......2007-09-05

It is a very well-written book. Tim Parks has a golden pen, from which words flow easily and beautifully. The superb language makes it quite easy to follow the history of the Florentine Bank of Medici from 1397 to 1494.

And the history is thrilling. Medici is the most powerful family in Florence, one of the first modern states, with investment banks, international trading and a parliament. Parks focuses his analysis on the business and politics of Florence, and in particular on the different patriarchs of the Medici family.

The 15th century Florence was a keystone in the Renaissance, and the Medicis played an important role in the development. They were sponsors of new art and new architecture, at the same time translating the works of Aristotle and Plato to Latin. Some of the Medicis were important in defining the powers of the state and that of the church.

Parks story would be even easier to follow if the book had paid more attention to the chronology. I also missed a better bibliography. But in all: well worth the read.

Medici Lite.......2007-03-28

Entertaining, light-hearted summary of the Medici family fortunes at their height in Florence, in a most non-academic style. Definitely for anyone interested in the Renaissance and especially art patronage who doesn't want to plough through a heavy piece of work of the era. Also thought the book provided hints of other aspects of Florence and its personalities to explore, especially about business entrepreneurs turning their fortunes into art collections.

Informative book that also makes for a good read.......2006-07-26

Parks' book encompasses the lives of the five heads of the Medici family, and simultaneously through the history of the city of Florence. Through the eyes of the city of Florence, we see Italy, and through slightly foggier lenses, all of Europe.

Parks clearly has a deep love and respect for the more medieval (as opposed to Renaissance) parts of his tale. If you are expecting a hagiographical account of Lorenzo the Magnificent and his great contributions to art, architecture and learning, this isn't the right book.

I picked this book up because I had an interest in the economic side of the Renaissance. For me, one of the more fun sides of history is following the dollars and cents to find an alternative rationale behind the traditional story. And in the first half of this book, Parks provides the goods.

Without talking down to the reader, he makes VERY complicated financial transactions seem simple enough that with a little extra care and attention, they are not only able to be followed, but able to be understood. The multiple types of profitable banking transations are complicated enough for a non-finance major, but when added to the necessity of covering their tracks to avoid falling afoul of Florentine law, Church law, the laws of England, Germany (and even Poland!), personal ethics and morals, and even the taxman, it is amazing that I finished the book, nonetheless enjoyed it and remember it.

The book is more or less chronological. He concentrates on five Medicis, and the chapters covering the first two, Giovanni and Cosimo, are by far the best. And if you are going to study the Medicis as bankers and politicians, rather than as art patrons, poets, and humanists, this makes sense; but it does mean that the book ends weakly. It does read a bit like "The Rise and Fall of the Medici Family", and he spares little when describing the fall. Much of the blame is placed on Lorenzo's unwillingness to learn the family trade (banking), considering it almost beneath him.

A surprise bonus in this book is the detailed account of Florentine politics during these 100 years. Parks is almost as gifted describing the complicated nature of a republic illegally ruled by an autocratic family as he is a bank illegally profiting from interest bearing loans. He falters slightly when inserting his personal opinions and when unable to refrain from making occasional comparisons to modern politics, but all-in-all, his description of the political situation is just as fascinating (and complicated) as the economic portions.

Brilliant History of the Rise and Decline of the Medici.......2006-06-23

This is mainly a history of the Medici banking enterprise, and it is fascinating to learn just how the bank declined. The problem was the passing of generations of bankers who loved banking. Their successors, unfortunately, were more interested in the social aspects of belonging to the Medici banking family. This lead to their spending more time being friends with royalty and other high potentates than on the bank itself. Consequently, the Medici banking house went into decline that ultimately proved terminal.

The fate of the Medici bank has been repeated over and over in history as there are all too often cases of virtuous and hard working founders whose creations were ultimately wasted away by relatively lazy successors.

In event, this is a great book that sheds new light on a subject that had already been heavily written about.

All In The Family.......2006-05-03

I read this book the same week I watched the fifth season of the Sopranos. The combination was serendipitous. Cosimo Medici has more style and class than Tony Soprano, but in many other ways they are remarkably alike. They're such family guys!

Tim Parks is an excellent writer, a witty and companionable guide to a time and place not nearly as remote from our modern age as we would like to imagine.

Parks successfully and succinctly portrays the Medicis, their contemporaries, their passions, and their flaws. Medici Money has everything: money, power, religion, war, politics, even a little sex.

You'd have to attend a Washington, D.C. power prayer breakfast with a herd of hungover lobbyists, a few calculating Pentagonistas, some self-satisfied lawyers and several jackleg congressmen to find a similarly fascinating and amusing engagement of these themes.

Yes, in many ways we're really not that different from those Florentines of five centuries ago. Sadly, some of the ways in which we are different do us no credit.

The art in the meeting room of the Marriott where these modern notables meet to pray and greet will consist of risible facsimiles of real paintings produced by an assembly-line gallery incorporated in Delaware. The breakfast itself will feature chewy scrambled eggs, unconvincing croissants and mock-designer coffee. Later, they'll go to work in boxy offices in boxy triumphalist buildings, and at night they'll drive their boxy SUVs to their boxy lairs in boxy D.C. suburbs. Their dinners will come out of (you guessed it) boxes.

One of the delights of this book is the author's loving depiction of some of the extraordinary works of painting, tapestry, sculpture, and other art commisioned by the Medicis and their contemporaries and rivals. And aaaah! The food of 15th century Florence! The architecture! The music!

The rich we have with us always. But they're far more tolerable when they choose to display their wealth and power with great works of art instead of Hummers, plasma TVs, and McMansions.

One of the charming sub-themes of Medici Money is that if you're going to hell, you might as well go in style and enjoy the good things of life along the way.

Happily, those of us who not only lack the financial resources to go to hell in fabulous style but can barely afford to indulge our book addictions are able to enjoy a few good things of life, too.

This book is one of them.

Ba-da-bing!

Average customer rating:

Heavy reading for numismatists, historians, and ... DMs.

Money and its Use in Medieval Europe
Peter Spufford
Manufacturer: Cambridge University Press
ProductGroup: Book
Binding: Paperback

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ASIN: 0521375908

Book Description

This is the first full-scale study of the history of money, not merely of coinage, to have been written for medieval Europe. The book is not limited to one country, or to any one period or theme, but extracts the most important elements for the historian across the broadest possible canvas. Its scope extends from the mining of precious metals on the one hand, to banking, including the use of cheques and bills of exchange, on the other. Chapters are arranged chronologically, rather than regionally or thematically, and offer a detailed picture of the many and changing roles played by money, in all its forms, in all parts of Europe throughout the Middle Ages. Thus money is seen as having differing significances for differing parts of individual societies. The book shows money moving and changing as a result of war and trade and other political, economic and ecclesiastical activities without regard for national barriers or the supposed separation between 'East' and 'West'.

Customer Reviews:

Heavy reading for numismatists, historians, and ... DMs........2003-11-02

Peter Spufford's highly detailed history of Medieval European money is an invaluable reference book for numismatists who want to know deep details of the coins they study, and for historians interested in the impact of trade, plunder, metal mining, and industry on the Medieval economy.

Strangely, what I found it most useful for was as an aid to running fantasy role-playing games (e.g., Dungeons & Dragons). Spufford explains the impact of inflation in Medieval economies caused by the rapid influx of ready money (from the silver mines of Bohemia, for example), which would closely parallel the impact of a treasure hoard brought to a civilized community by fantasy adventurers.

Likewise, Spufford deals with the shortage of precious metals and their impact on coinage: debasement, depreciation, and depression, as "white" (silver) money gradually becomes "black" (base metal) coinage. DMs could readily reduce the impact of inflation in their campaigns by having adventurers discover a hoard of debased coinage with only a limited amount of "good" gold and silver coins. Rather than assuming that "treasure types" in monster hoards and lairs are good coinage all of the time, even a cursory study of "Money and Its Uses" should give the DM ideas for tossing in debased coinage.

Debased coins in hoards could, in turn, become adventure hooks if the player characters actually bother to study what they have found: why, for example are the coins of King Poobah IV mostly lead mixed with a small amount of silver when his father, King Poobah III, issued sound coins of good silver? Did something happen to cut off the silver supply? Is there perhaps an orc-infested silver mine somewhere nearby? As Spufford indicates -- primarily in relation to gold -- enemy action could off one state from its supply of precious metals in some other part of the world, enriching the enemy at the expense of the suddenly deprived state. In a fantasy campaign, the enemy might well be orcs, a dragon, or a lich instead of Turks or Mongols. On the other hand, a third state might well profit by trading with the first state's enemy. (In The Forgotten Realms Campaign setting, imagine Calimshan suddenly boycotting Waterdeep to trade exclusively with Amn, and you have a parallel with the commercial rivalry of, for example, Venice and Genoa trying to snare trade with the Muslim East.)

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The Economic and Business Consequences of the EMU: A Challenge for Governments, Financial Institutions and Firms

Manufacturer: Springer
ProductGroup: Book
Binding: Hardcover

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ASIN: 0792379640

Book Description

The European Monetary Union (EMU) got under way on 1 January 1999. Since then 11 European countries share a common currency, the Euro, and pursue a common monetary policy managed by the European Central Bank (ECB). After forty years of economic integration, Europe has the wherewithal with which to enter the 21st century. However monetary union has implications for nearly all areas of economic activity and decision-making. Throughout the academic world researchers are fully occupied with the theoretical analysis of the impact of the Euro and the effects of incorporating the new operational framework into their economic models. Businesses and government departments are concerned primarily with the practical implementation of the single currency. For all those who play a part in the economy, it is a question of making the most of the macro and microeconomic opportunities offered by the Euro and minimizing any threats.
The Economic and Business Consequences of the EMU describes the economic consequences of the introduction of the EMU and the Euro for governments, financial institutions and firms. The volume,s aims are threefold:

To make a first assessment after about a year=s experience with Economic and Monetary Union;
To examine the impact of EMU and the introduction of the Euro in various areas of economic policy, involving both government and the corporate sector including the banking industry;
To provide an insight into the challenges that the Euro offers for the coming years with respect both to macro-economic policy and the development of the financial markets and with respect to business management.

Capital, Payments and Money Laundering in the European Union

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Capital, Payments and Money Laundering in the European Union
John Handoll
Manufacturer: Oxford University Press, USA
ProductGroup: Book
Binding: Hardcover

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ASIN: 1904501516

Book Description

The free movement of capital and payments within the EU and between the EU and third countries is an essential component in establishing the internal market in financial services.
L This work provides an expert and practical analysis of the Treaty framework governing free movement of capital and payments, covering the definition of capital payments, the prohibition of restrictions on free movement, together with the permitted exceptions, derogations and safeguard measures.
The provisions are considered in the context of other EU Treaty provisions and the international environment. The author also addresses the increasingly complex EU framework for combating money laundering.

The Year of the Euro: The Cultural, Social, And Political Import of Europe's Common Currency (Contemporary European Politics and Society)

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The Year of the Euro: The Cultural, Social, And Political Import of Europe's Common Currency (Contemporary European Politics and Society)

Manufacturer: University of Notre Dame Press
ProductGroup: Book
Binding: Paperback

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ASIN: 0268028818

Book Description

"The euro has quickly become a world currency, and this excellent work explains how this came about. It does the job, not only by looking at the economic factors involved, but also at political, legal, social, and cultural factors—all in a very creative and readable manner." —Richard Swedberg, Cornell University

"If the nineteenth and twentieth centuries brought a dramatic nationalization of government-backed currencies across the world, does the euro's introduction in 2002 write finis to the era of nationalism? Here, superbly informed observers of European politics, economy, and social life debate that question from multiple perspectives, not only documenting the depth of the euro's challenge, but also mapping alternative futures for Europe. An illuminating intervention in a vital conversation." —Viviana A. Zelizer, Lloyd Cotsen '50 Professor of Sociology, Princeton University

"This is one of the most interesting and original books in the burgeoning field of EU studies to have emerged in recent years. Its emphasis on the likely social and cultural—not just political and economic—impact of the euro at the national, subnational, and supranational levels is timely and refreshing. Tighly edited, this book should be essential reading for professional and amateur EU-watchers alike." —Desmond Dinan, Jean Monnet Professor of Public Policy, George Mason University

"I know of no other books on the academic market that deal with the impact of the Euro on the political, economic, and social fabric of Europe. This volume is currently one-of-a-kind." —Jeffrey Anderson, Georgetown University

The Year of the Euro examines the wide-ranging importance of Europe's new single currency beyond its impact on financial markets and the economy itself. On January 1, 2002, when the new currency began to circulate in the twelve participating member states of the European Union, the long move toward a supranational European framework for trade and institutions finally entered the fabric of daily life for hundreds of millions of citizens. The contributing authors to this highly readable and interdisciplinary volume offer a variety of perspectives on this extraordinary episode in currency change and European convergence. The book's essays offer the assessments of leading scholars of European affairs—from the fields of history, political science, sociology, and law—as to whether the new common currency will reshape the continent's cultures, societies and political systems and, if so, in what ways. The discussions and debates found in these pages will inform those, within and outside academia, who are interested in the future of Europe and in the meaning of national currencies. The volume is also suitable for classroom use in courses on the European Union, cultural and economic sociology, comparative politics, and contemporary Europe.

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Highly Recommended!

The Big Problem of Small Change (Princeton Economic History of the Western World)
Thomas J. Sargent , and Francois R. Velde
Manufacturer: Princeton University Press
ProductGroup: Book
Binding: Hardcover

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Similar Items:

The Conquest of American Inflation.

Institutions and the Path to the Modern Economy: Lessons from Medieval Trade (Political Economy of Institutions and Decisions)

Interest and Prices: Foundations of a Theory of Monetary Policy

Recursive Macroeconomic Theory, 2nd Edition

Foundations of International Macroeconomics

ASIN: 0691029326

Book Description

The Big Problem of Small Change offers the first credible and analytically sound explanation of how a problem that dogged monetary authorities for hundreds of years was finally solved. Two leading economists, Thomas Sargent and François Velde, examine the evolution of Western European economies through the lens of one of the classic problems of monetary history--the recurring scarcity and depreciation of small change. Through penetrating and clearly worded analysis, they tell the story of how monetary technologies, doctrines, and practices evolved from 1300 to 1850; of how the "standard formula" was devised to address an age-old dilemma without causing inflation.

One big problem had long plagued commodity money (that is, money literally worth its weight in gold): governments were hard-pressed to provide a steady supply of small change because of its high costs of production. The ensuing shortages hampered trade and, paradoxically, resulted in inflation and depreciation of small change. After centuries of technological progress that limited counterfeiting, in the nineteenth century governments replaced the small change in use until then with fiat money (money not literally equal to the value claimed for it)--ensuring a secure flow of small change. But this was not all. By solving this problem, suggest Sargent and Velde, modern European states laid the intellectual and practical basis for the diverse forms of money that make the world go round today.

This keenly argued, richly imaginative, and attractively illustrated study presents a comprehensive history and theory of small change. The authors skillfully convey the intuition that underlies their rigorous analysis. All those intrigued by monetary history will recognize this book for the standard that it is.

Customer Reviews:

Highly Recommended!.......2004-06-23

Authors Thomas J. Sargent and François R. Velde offer a fascinating work of scholarship that studies the history of coinage in broad scope and depth. They dwell on a problem that is no longer a problem: the set value of coins. Internationally, consumers take it for granted that so many units of small change equal a larger unit of money. A U.S. shopper never wonders if 100 pennies could be worth more or less than a dollar. But during most of history, the value of small change was a vexing economic conundrum. The authors explore the evolution of the monetary system from Roman times, taking a circuitous and rambling path that touches on many subjects, from sieges to papal speculations. Regrettably, this book may be inaccessible to readers without a firm grounding in economic history and some comfort with higher math since the authors are scholars and assume that you are, too. Nonetheless, we recommend this sweeping book to anyone whose curiosity is piqued by this précis.

Economics of Monetary Union, 4th Edition

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Useful

Economics of Monetary Union, 4th Edition
Paul De Grauwe
Manufacturer: Oxford University Press, USA
ProductGroup: Book
Binding: Paperback

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ASIN: 0198776322

Book Description

With the launch of the Euro, Europe's monetary landscape has changed fundamentally. Now in its fourth edition, this well-established textbook on monetary integration has been significantly rewritten to take account of these changes. New issues include: Monetary policies in Euroland in the presence of asymmetric shocks The mechanics of open market operations in Euroland Is the Eurosystem too decentralized? The Target Payments system Problems of bank supervision and control in Euroland The future of the euro in the international financial system Will the euro be a strong currency? Financial and banking integration in Euroland. This latest edition has been produced in a larger format, with clear figures and tables packed with relevant international data. Chapter conclusions provide a clear summary of each topic under discussion. Paul De Grauwe's lucid and balanced analysis continues to provide a clear account of all the crucial issues surrounding monetary union for undergraduate students of monetary economics and European studies.

Customer Reviews:

Useful.......2002-04-10

I'm an undergraduate student in Finance and Economics. I picked up this book for a term paper for my Public Economics class.

If there's one thing to say about De Grauwe's book is that it seemed very useful, down to earth, in contrast to other economics books I've read. The concepts covered in the book were explained very clearly, and for someone interested in the area, the theories seemed ready for use for application in understanding the important issues of monetary integration.

Whether there are flaws in the theory are--honestly--beyond my grasp; I'd have to read more. The book seems written and revised fairly enough and hasn't received negative comments from the faculty at my university. If someone else has a contrary opinion, I'm sure it'd help for people to hear.

Book Description

The creation of the European Central Bank and the Euro have brought new challenges to EU integration and economic policy. This book looks into issues of monetary and factor market policies. The analysis also presents new theoretical and empirical research on the - transitory - decline of the Euro. Issues of exchange rate policy and international economic relations also are addressed.

Economic and Monetary Union in Europe: Moving beyond Maastricht

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Useful contribution to vital debate
This is a handbook of Euro

Economic and Monetary Union in Europe: Moving beyond Maastricht
Peter B. Kenen
Manufacturer: Cambridge University Press
ProductGroup: Book
Binding: Paperback

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ASIN: 0521558832

Book Description

This book provides a comprehensive account and analysis of the plan for European monetary union contained in the Maastricht Treaty. The provisions of the treaty itself are examined, showing how they evolved, what must be done to implement them, and some of the problems they will pose. Kenen goes far beyond the treaty, however, to survey and adapt recent research by economists on the benefits and costs of monetary unions, the conduct of monetary policy, and the consequences of large public deficits and debts.

Customer Reviews:

Useful contribution to vital debate.......2001-05-17

Professor Peter Kenen is a leading US expert on international economic relations. In this excellent little book, he analyses the prospects for Economic and Monetary Union.

Firstly, he shows the difficulties that countries are having when their governments try to meet the criteria for Economic and Monetary Union. He points out that in 1994 none of the twelve European Community countries met all four criteria; Italy and Portugal met none of them. Six countries failed the inflation test; two had interest rates too high; ten had fiscal deficits too high, and eight had excessive public debts.

Since then, European Union economies have stagnated or shrunk, so they are even further from meeting the criteria. Four of the six countries with debt ratios above 75 per cent of Gross Domestic Product (GDP) in 1993 ran bigger budget deficits in 1994 than in 1992, so they would have to make even bigger cuts in their deficits before they can start to cut their debt ratios.

The Governments are in a dilemma: they cannot cut their budget deficits quickly to the stipulated three per cent without depressing real economic activity. And the more they deflate their economies, the less popular support there is for Economic and Monetary Union. Professor Kenen sums up, "It is thus unlikely that a majority of EC countries will be ready for Stage Three in 1997, when a majority is required to set a starting date, and it may be hard to muster a majority in 1999 - although a majority is not needed then." Stage Three is supposed to start automatically in 1999!

Secondly, Kenen studies the likely results if Governments seriously try to meet the criteria. He cites Buiter et al, writing in Economic Policy: "Greece, Italy, Belgium and Ireland need serious fiscal retrenchment, but getting even halfway to the Maastricht debt targets ... involves dangerous fiscal overkill. A blatantly unrealistic debt target is unhelpful for these countries in designing effective fiscal programs." They write that the necessary scale of retrenchment would involve "the economics of the lunatic asylum."

Kenen also cites the Centre for European Policy Studies in Brussels, which says that "If the Maastricht targets are adhered to, something significant will have to give in terms of public expenditure in many EC countries, with social consequences which could be highly disruptive. Clawing back public deficits which are across the Community higher in GDP percentage terms than they have been at any moment since the EC was founded, at a time when more and more 'legitimate' demands are made on the public purse, looks increasingly like trying to run up a downward moving escalator."

Thirdly, Kenen looks at the costs of joining Economic and Monetary Union. He cites the economists Ghosh and Wolf who estimate that joining it would cost as much as 2.5 per cent of the European Union's total GDP. The European Union's own employment committee said that Economic and Monetary Union would destroy ten million jobs in the European Union.

Supporters of Economic and Monetary Union like to claim that it would curb the speculators, tame finance capital, and end financial crises. But what does Kenen conclude? "In the first years of Economic and Monetary Union, then, the G-7 countries may find it harder to agree on policies and strategies for exchange rate management, and Economic and Monetary Union may thus lead to exchange rate fluctuations wider than those seen since the Louvre Accord [of 1987]. That would be truly ironic. Economic and Monetary Union is meant to replace the EMS (European Monetary System), which emerged from the desire to create a zone of monetary stability in Europe. Yet the achievement of that goal may have the effect of producing greater exchange rate instability at the global level."

A single European currency would not end speculation. It would still be operating in the world of global speculative flows. A single currency would be the focus for speculation against the dollar and the yen, and a smaller number of currencies could generate even more rapid and destabilising speculative flows.

So, to sum up, Kenen's book shows us that Economic and Monetary Union would be extremely difficult and painful to achieve. It would mean savage cuts in public spending (an estimated £18 billion in Britain), a 2.5 per cent reduction in GDP, and greater exchange rate instability. The cuts in public spending would also increase unemployment, reduce wages and worsen our public services...

This is a handbook of Euro.......2000-08-10

EMU is the most important international economic event since the Bretton Woods Agreements of 1944.It will represent a further step in the process of economic integration within the European Union. The effects of the monetary union will be felt primarily in the Euro area participating countries. At the same time, Euro will affect international monetary system. Euro's taking its place among the major international currencies is going to be gradual. This process will be quite important for the countries those with the close economic relationships with the European Monetary Union member countries. This book is a must read for all interested in the Euro...

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