TY  - JOUR
AU  - Buiter,Willem H.
AU  - Sibert,Anne C.
TI  - Transition Issues for the European Monetary Union
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6292
PY  - 1997
Y2  - November 1997
UR  - http://www.nber.org/papers/w6292
L1  - http://www.nber.org/papers/w6292.pdf
N1  - Author contact info:
Willem H. Buiter
Citigroup Centre
Canada Square, Canary Wharf
London E14 5LB
UNITED KINGDOM
E-Mail: willembuiter@btinternet.com

Anne C. Sibert
Department of Economics, Mathematics
  and Statistics
Birkbeck College
University of London
Malet Street, London WC1E 7HX
United Kingdom
E-Mail: asibert@econ.bbk.ac.uk
AB  - If Stage Three of EMU starts on January 1, 1999, transition issues remain on two time scales.  Until July 1, 2002, national currencies and the euro co-exist as legal tender.  We argue that intra-EMU currency risk exists in principle during that period, but that no EMU member can be forced out through speculative attacks. Cohabitation of Ins and Outs has an open-ended time scale. We discuss the effect of EMU on incentives for both Ins and Outs to undertake structural reform and the coordination problems associated with the distribution of seigniorage revenue and the Stability and Growth Pact.
ER  -