The EMS Is not Enough: The Need for Monetary Union

Tommaso Padoa‐Schioppa

in The Road to Monetary Union in Europe

Published in print December 2000 | ISBN: 9780199241767
Published online November 2003 | e-ISBN: 9780191596742 | DOI:
The EMS Is not Enough: The Need for Monetary Union

More Like This

Show all results sharing this subject:

  • Macroeconomics and Monetary Economics


Show Summary Details


The long‐term prospects of the European Monetary System (EMS) are examined from a non‐technical viewpoint, considering the system as a variable rather than a given. The prospects are seen as comprising three phases. The first phase, which has now concluded, is consolidation. The second phase is the current phase, and is the period in which the ‘inconsistent quartet’ emerges. This involves seeking to achieve the impossible task of reconciling free trade, full capital mobility, fixed (or managed) exchange rates, and national autonomy in the conduct of monetary policy. The third phase is starting to foresee European Monetary Union (EMU); in this phase full implementation of free trade and capital mobility will occur.

Keywords: capital mobility; EMS; EMU; European Monetary System; European Monetary Union; exchange rates; free trade; long‐term planning; monetary policy; national autonomy

Chapter.  6879 words. 

Subjects: Macroeconomics and Monetary Economics

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.