Structural reforms and the enlargement of monetary union

Carsten Hefeker

The paper addresses the question what effects the enlargement of a monetary union will have on necessary structural reforms in the (low distortion) member countries and the (high distortion) candidate countries. While monetary union lowers reforms in the candidate countries, members of the monetary union will increase their reform efforts. The paper also derives the conditions under which countries agree to an enlargement of monetary union.

MoreLess

Year of publication:	October 2003
Authors:	Hefeker, Carsten
Publisher:	Munich : CESifo, Center for Economic Studies & Ifo Institute
Subject:	monetary union \| asymmetric shocks \| inflation \| structural reforms \| convergence \| Währungsunion \| Monetary union \| EU-Mitgliedschaft \| EU membership \| Wirtschaftsreform \| Economic reform \| Inflationserwartung \| Inflation expectations \| Geldpolitik \| Monetary policy \| Neue politische Ökonomie \| Public choice \| Theorie \| Theory \| Europäische Union \| Erweiterung \| Inflation