Implications of EMU Enlargement for European Monetary Policy: A Political Economy View
JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
Implications of EMU Enlargement for European Monetary Policy: A Political Economy View
Maier, Philipp | Hendrikx, Maarten
Credit and Capital Markets – Kredit und Kapital, Vol. 36 (2003), Iss. 2 : pp. 137–166
Additional Information
Article Details
Author Details
Philipp Maier, Amsterdam
Maarten Hendrikx, Amsterdam
References
-
Arratibel, O., Rodriguez-Palenzuuela, D. and C. Thimann, 2002, Inflation dynamics and dual inflation in accession countries: A “new Keynesian” perspective, European Central Bank Working Paper, 132.
Google Scholar -
Baldwin, R., Francois, J. and R. Portes, 1997, Costs and benefits of Eastern Enlargement: The impact on the EU and Central Europe, Economic Policy 24, 127-176.
Google Scholar -
Berger, H. and U. Woitek, 1997, How opportunistic are partisan German central bankers? A note on the Vaubel hypothesis, European Journal of Political Economy, 13, 807-822.
Google Scholar -
Bofinger, P., 1998, The political economy of the Eastern enlargement of the EU, in B. Eichengreen, Forging an integrated Europe, University of Michigan Press, 273-325.
Google Scholar -
Breuss, F., 2001, Macroeconomic effects of EU enlargement for old and new members, WIFO working paper no. 143/2001, WIFO, Vienna.
Google Scholar
Abstract
In this paper we investigate the implications of EMU enlargement from a political economy perspective. We argue that a high degree of convergence of the candidate countries prior to EMU accession is an important requisite. Otherwise, as a result of a sharp increase in economic dispersion, public support for European monetary policy is likely to decrease, and external pressure on the European Central Bank will mount. (JEL E 58, E 50, D 78)