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International Economic Integration pp 67–94Cite as

Promoting Economic Integration by the EMS?

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Part of the book series: Studies in Contemporary Economics ((CONTEMPORARY))

Abstract

In 1979, the European Community established the European Monetary System (EMS) in order to achieve a “greater measure of monetary stability”, to “facilitate economic convergence” and to “give the process of European integration new momentum” (European Fund for Monetary Cooperation 1985). This approach was based on the assumption that economic integration can be promoted by stabilizing exchange rates. In the recent debate on the Maastricht treaty similar arguments linking exchange rate stability and economic integration have been advanced (e.g., Emerson et al. 1991; Baldwin 1991). Stable exchange rates between EU currencies are said to be necessary to fully reap the gains of the internal market and to achieve further integration of the capital and goods markets.1 Therefore, the evaluation of the EMS experience, while being of great interest in itself, can also give some evidence of the possible effects of the European Monetary Union for the European Economic Union.

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Authors and Affiliations

  1. Wirtschaftswissenschaftliches Seminar, Universität Tübingen, D-72074, Tübingen, Germany

    PD Dr. Bernhard Herz

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  1. PD Dr. Bernhard Herz
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Editors and Affiliations

  1. TU Braunschweig, Spielmannstr. 9, D-38106, Braunschweig, Germany

    Franz Peter Lang

  2. Institut für Volkswirtschaftslehre Lehrstuhl für Außenwirtschaft, Universität Hohenheim (520), Schloß Mittelhof-Ost, D-70593, Stuttgart, Germany

    Renate Ohr

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© 1995 Physica-Verlag Heidelberg

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Herz, B. (1995). Promoting Economic Integration by the EMS?. In: Lang, F.P., Ohr, R. (eds) International Economic Integration. Studies in Contemporary Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-642-48421-6_4

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  • DOI: https://doi.org/10.1007/978-3-642-48421-6_4

  • Publisher Name: Physica-Verlag HD

  • Print ISBN: 978-3-7908-0861-2

  • Online ISBN: 978-3-642-48421-6

  • eBook Packages: Springer Book Archive

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