The Euro - The First Decade

On 1 January 1999 eleven EU Member States adopted a new currency – the euro. The introduction of the euro was a remarkable feat in the history of European monetary, financial, economic and political integration. It was an event of worldwide significance. Despite much criticism and predictions that it would quickly collapse, the first decade of the euro has been a remarkable success. The euro area has now expanded to 16 members with a combined population of 326 million and contributes 16 per cent of global output. This book is the first to provide a wide-ranging strategic review of the first decade of the euro. Written by an impressive line-up of academic and professional economists, The Euro: The First Decade is an invaluable reference for scholars and policy makers who wish to know more about the successes and failures of the euro and the challenges that lie ahead. • First book to provide a comprehensive economic analysis of the first decade of the euro • Analyses key achievements and failures of the euro and identifies challenges to come • Written by a team of leading professional and academic economists, many of whom were intimately involved in the development of the euro

1. Euro: the first decade and beyond Marco Buti, Servaas Deroose, Vitor Gaspar and João Nogueira Martins Part I. Historical Perspective 2. A long term perspective on the euro Michael Bordo and Harold James 3. Sui generis EMU Barry Eichengreen; Comment Niels Thygesen Part II. OCA Theory Revisited 4. The OCA theory and the path to EMU Francesco Mongelli 5. A modern reconsideration of the theory of optimum currency areas Giancarlo Corsetti; Comment Peter Hoeller Part III. Monetary Policy 6. ECB credibility and transparency Petra Geraats 7. Some observations on the ECB's monetary policy Manfred J. M. Neumann; Comment Frank Smets Part IV. Financial Markets 8. The ECB and the bond market Carlo Favero and Francesco Giavazzi; Comment Domenico Giannone, Michele Lenza and Lucrezia Reichlin 9. Financial market integration under EMU Tullio Jappelli and Marco Pagano; Comment Simon Hayes 10. The international role of the euro: a status report Elias Papaioannou and Richard Portes; Comment André Sapir Part V. Fiscal Policy 11. EMU's decentralised system of fiscal policy Jürgen von Hagen and Charles Wyplosz; Comment Martin Larch and Lucio Pench 12. Should we forsake automatic fiscal stabilization? Xavier Debrun, Jean Pisani-Ferry and André Sapir; Comment Gilles Saint-Paul 13. Fiscal policy, intercountry adjustment and the real exchange rate in EMU Christopher Allsopp and David Vines; Comment Robert Kollmann 14. Taxation policy in EMU Julian Alworth and Giampaolo Arachi; Comment Casper van Ewijk Part VI. Growth, Trade and Volatility 15. The impact of EMU on growth in Europe Ray Barrell, Dawn Holland, Iana Liadze and Olga Pomerantz; Comment Jörg Decressin and Emil Stavrev 16. The impact of the euro on international stability and volatility Stefan Gerlach and Matthias Hoffmann; Comment Philipp Hartmann 17. The impact of the euro on trade and FDI Richard Baldwin; Comment Karl Pichelmann Part VII. Structural Reforms 18. Labour markets in EMU: what has changed, and what needs to change Giuseppe Bertola 19. How product market reforms lubricate shock adjustment in the euro area Jacques Pelkmans, Lourdes Acedo Montoya and Alessandro Maravalle; Comment Gert Jan Koopman; Part VIII. Enlargement and Governance 20. Euro area enlargement and euro adoption strategies Zsolt Darvas and György Szapáry 21. Governance in an enlarged euro area Iain Begg; Comment Jean Pisani-Ferry; References