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The hard ECU — A substitute for the D-Mark or a trojan horse?

  • European Community
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Intereconomics

Abstract

The British Government≐s proposal to develop the ECU gradually into a “hard” European currency has begun to be viewed in a more positive light. What principles are at the heart of this proposal? Does a “hard” ECU have advantages over the existing ECU? What are its chances as a parallel currency?

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References

  1. See inter alia R. Leigh-Pemberton: The United Kingdom’s proposal for economic and monetary union, in: Bank of England, Quarterly Bulletin, Vol. 30, No. 3, August 1990, pp. 374–377; R. Leigh-Pemberton: Beyond Stage 1 of EMU, in: Bank of England, op. cit., Quarterly Bulletin, Vol. 30, No. 3, August 1990, pp. 378 ff; R. Leigh-Pemberton: The World Economy and Europe—1991, reprinted in: Deutsche Bundesbank, Auszüge aus Presseartikeln, No. 7, 30th January 1991, pp. 4–8; Bank of England: The Hard ECU in Stage 2: Operational Requirements, London, 21st June 1990.

  2. Cf. inter alia John Major: Ein harter ECU kann in der Gemeinschaft das Rennen machen, in: Handelsblatt, 6th July 1990; John Major: Stärker als die Deutsche Mark, in: Die Zeit, No. 28, 6th July 1990.

  3. Cf. inter alia the reaction of Bundesbank President Karl Otto Pöhl, expressed in an interview in The Times, 26th June 1990; P. Norman: Out of step on the ECU, in: The Financial Times, 25th June 1990.

  4. Cf. O. Issing: Über die “Hard ECU” zur Europäischen Währungsunion?, in: Deutsche Bundesbank, Auszüge aus Presseartikeln, No. 6, 28th January 1991, pp. 7 f.

  5. As stated by the Governor of the Bank of England in Strasbourg on 11th July 1990; see R. Leigh-Pemberton: The United Kingdom’s proposal for economic and monetary union, op. cit., in: Bank of England, Quarterly Bulletin, Vol. 30, No. 3, August 1990, pp. 374.

  6. R. Leigh-Pemberton, ibid., The World Economy and Europe—1991, reprinted in: Deutsche Bundesbank, Auszüge aus Presseartikeln, No. 7, 30th January 1991, pp. 376.

  7. See R. Leigh-Pemberton: The World Economy and Europe—1991, op. cit., reprinted in: Deutsche Bundesbank, Auszüge aus Presseartikeln, No. 7, 30th January 1991, pp. 7 f.; UK Government: Economic and Monetary Union—Beyond Stage 1. Possible Treaty Provisions and Statute for a European Monetary Fund, January 1991.

  8. Reproduced in: M. Fratianni and T. Peeters: One Money for Europe, London and Basingstoke 1978, pp. 37–43.

  9. Cf. Rolf Hasse: Konfliktpotentiale in den amerikanischeuropäischen Währungsbeziehungen, in: M. Knapp (ed.): Transatlantische Beziehungen. Die USA und Europa zwischen gemeinsamen Interessen und Konflikt, Stuttgart 1990, pp. 82 ff. and 93 ff.

  10. Cf. Rolf Hasse: Die ECU—ein Währungsmedium mit Integrationswirkungen?, in: Zeitschrift für Wirtschaftspolitik, Vol. 37, No. 2/3 (1988), pp. 238 ff.; Rolf Hasse: The European Central Bank: Perspectives for a Further Development of the European Monetary System, Gütersloh 1990, pp. 101–114; see also N. Kloten and P. Bofinger: Währungsintegration über eine europäische Parallelwährung?, in: D. Duwendag (ed.): Europa-Banking. Bankpolitik im europäischen Finanzraum und währungspolitische Integration, Baden-Baden 1988, pp. 64 ff.

  11. Cf. Peter Bofinger: The Political Economy of the Hard-ECU Proposal, Centre for Economic Policy Research, Discussion Paper Series, No. 512, London, February 1991, pp. 6–8 and the literature cited therein.

  12. See inter alia B. Klein: Competing Monies, European Monetary Union and the Dollar, in: M. Fratianni and T. Peeters, op. cit., One Money for Europe, London and Basingstoke 1978, pp. 69–94.

  13. See the explanations in R. Hasse: The European Central Bank, op. cit. Perspectives for a Further Development of the European Monetary System, Gütersloh 1990, pp. 108 f.

  14. Cf. Peter B. Kenen: The Role of the Dollar as an International Currency, Group of Thirty, Occasional Papers, No. 13, New YYork 1983.

  15. See the empirical evidence in R. Hasse: Die ECU—ein Währungsmedium mit Integrationswirkungen, op. cit., in: Zeitschrift für Wirtschaftspolitik, Vol. 37, No. 2/3 (1988), pp. 243 f.

  16. R. Leigh-Pemberton: The World Economy and Europe-1991, op. cit. reprinted in: Deutsche Bundesbank, Auszüge aus Presseartikeln, No. 7, 30th January 1991, pp. 7.

  17. Cf. Rainer S. Masera: An Increasing Role for the ECU: a Character in Search of a Script, in: D. E. Fair and C. de Boissieu (eds.): International Monetary and Financial Integration—The European Dimension, Dordrecht 1988, pp. 129–150.

  18. R. Leigh-Pemberton: The World Economy and Europe-1991, op. cit. reprinted in: Deutsche Bundesbank, Auszüge aus Presseartikeln, No. 7, 30th January 1991, pp. 8.

  19. Ibid. R. Leigh-Pemberton: The World Economy and Europe-1991, reprinted in: Deutsche Bundesbank, Auszüge aus Presseartikeln, No. 7, 30th January 1991, pp. 4–8.

  20. Cf. Rolf Hasse: Multiple Währungsreserven. Probleme eines Währungsstandards mit multiplen Devisenreserven, Stuttgart, New York 1984, pp. 149 ff.

  21. For more detail, see Rolf Hasse: The European Central Bank, op. cit. Perspectives for a Further Development of the European Monetary System, Gütersloh 1990, pp. 143 ff.

  22. See R. Leigh-Pemberton: The World Economy and Europe-1991, op. cit., reprinted in: Deutsche Bundesbank, Auszüge aus Presseartikeln, No. 7, 30th January 1991, pp. 8.

  23. Cf. M. Russo: Cooperation and Coordination in the EMS: The System at a Crossroads, in: C. Dräger and L. Späth (eds.): Internationales Währungssystem und weltwirtschaftliche Entwicklung, Baden-Baden 1988.

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  1. University of the Federal Armed Forces, Hamburg, Germany

    Rolf H. Hasse & Thomas Koch

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  1. Rolf H. Hasse
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  2. Thomas Koch
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Hasse, R.H., Koch, T. The hard ECU — A substitute for the D-Mark or a trojan horse?. Intereconomics 26, 159–166 (1991). https://doi.org/10.1007/BF02926339

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