TY  - JOUR
AU  - Alesina,Alberto
AU  - Grilli,Vittorio
TI  - On the Feasibility of a One or Multi-Speed European Monetary Union
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4350
PY  - 1993
Y2  - April 1993
UR  - http://www.nber.org/papers/w4350
L1  - http://www.nber.org/papers/w4350.pdf
N1  - Author contact info:
Alberto F. Alesina
Department of Economics
Harvard University
Littauer Center 210
Cambridge, MA 02138
Tel: 617/495-8388
Fax: 617/495-7730
E-Mail: aalesina@harvard.edu
AB  - This paper addresses two questions: (1) Is a twelve country monetary union in Europe feasible; (2) Can monetary union be achieved at multi-speed, i.e., with a rust group of countries going first, and later admitting the others? After examining several politico-economic arguments concerning problems of feasibility of the union, we conclude with a fair amount of skepticism concerning the multi-speed idea. We show that the final result of the process of monetary integration is dependent upon at "how many speeds" Europe will proceed. Our discussion of feasibility shed some light on the political economy of the recent (Fall of 1992) turmoil in the monetary system of Europe.
ER  -