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Intereconomics

, Volume 27, Issue 1, pp 38–44 | Cite as

Scandinavia's monetary convergence with the European Community

  • Bernhard Duijm
  • Bettina Nürk
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Abstract

In the twelve months preceding the conclusion by the EFTA countries and the EC of the agreement on the establishment of a common European Economic Area in October 1991, the three Skandinavian EFTA members-Norway, Finland and Sweden-decided to tie their currencies to the ECU. What objectives do these countries hope to achieve by this move? What effects is it likely to have?

Keywords

Exchange Rate Foreign Trade Inflation Rate Exchange Rate Policy Northern European Country 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. 1.
    Cf. Dick Kling: Effect of Foreign Exchange Policy on the Swedish Economy, in: Wirtschaftspolitische Blätter, Vol. 35 (1988), pp. 143–149, here p. 148.Google Scholar
  2. 2.
    See “The Swedish ECU-Peg: Motivation and Technical Solutions”, Press Notice of the Sveriges Riksbank, in: Deutsche Bundesbank: Auszüge aus Pressearlikeln, No. 38, 24th May 1991, p. 13.Google Scholar
  3. 3.
    Robert Taylor: Linkage to Ecu signals Nordic area's intentions, in: Financial Times, London and Frankfurt, 7th June 1991.Google Scholar
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    The figures that follow are based on OECD data; see Ifo-Institut für Wirtschaftsforschung: European Economies in Graphs and Figures 1970–1992, Munich 1991.Google Scholar
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    The calculations are based on OECD data; see Ifo-Institut für Wirtschaftsforschung, op. cit. European Economies in Graphs and Figures 1970–1992, Munich 1991.Google Scholar
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    See Ifo-Institut für Wirtschaftsforschung, op. cit. European Economies in Graphs and Figures 1970–1992, Munich 1991.Google Scholar
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    Cf. “The Swedish ECU-Peg”, op. cit. Motivation and Technical Solutions”, Press Notice of the Sveriges Riksbank, in: Deutsche Bundesbank: Auszüge aus Presseartikeln, No. 38, 24th May 1991, p. 14.Google Scholar
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    Cf. “Finnmark ab Freitag an ECU gekoppelt”, in: Frankfurter Allgemeine Zeitung, 5th June 1991, and OECD Economic Surveys 1990/1991: Norway.Google Scholar
  9. 9.
    For the absolute figures, see OECD Economic Surveys 1988/1989: Finland, p. 132.Google Scholar
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    Cf. “Zusammenwachsen des europäischen Währungsblocks”, in: Neue Zürcher Zeitung, Fernausgabe No. 125, 4th June 1991.Google Scholar
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    see Makku Kotilainen and Tapio Peura: Finland's Exchange Rate System and European Integration, in: Kansallis Economic Review, 1/1989, pp. 36–44.Google Scholar
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    Cf. Norges Bank: Annual Report 1989, Oslo 1990; according to this source, more than 10% of Norway's foreign exchange reserves consist of ECUs.Google Scholar
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    Cf. Robert Taylor, op. cit. Linkage to Ecu signals Nordic area's intentions, in: Financial Times, London and Frankfurt, 7th June 1991.Google Scholar
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    Cf. Michael Connolly: Optimum Currency Peg for Latin America, in: Journal of Money, Credit and Banking, Vol. 15 (1983), pp. 56–72, here p. 63.Google Scholar
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    Cf. Deutsche Bundesbank: Geschäftsbericht für das Jahr 1990, Frankfurt 1991, p. 66.Google Scholar
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    According to Haberler, Tower and Willett, a similarity of views on the desired economic policy is among the preconditions for an optimum currency area; see, for example, Gottfried Haberler: The International Monetary System: Some Recent Developments and Discussions, in George N. Halm (ed.): Approaches to Greater Flexibility of Exchange Rates, Princeton 1970, pp. 115–123.Google Scholar
  18. 21.
    See Bernhard Duijm: Wechselkurspolitik für Entwicklungsländer Munich 1990, pp. 151 ff.Google Scholar

Copyright information

© HWWA and Springer-Verlag 1992

Authors and Affiliations

  • Bernhard Duijm
    • 1
  • Bettina Nürk
    • 1
  1. 1.University of TübingenGermany

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