The switch to electronic payments
Abstract: On January 1, 1999, 11 European countries will officially become a monetary union with one currency, the euro. Forming a monetary union brings benefits, such as increased trade between countries. But it carries costs as well. To join the union, each country must cede its right to set individual monetary and exchange-rate policies. Yet each country?s economic situation may differ from that of its fellow union members. How will these countries--and the union--fare when economic shocks hit, especially shocks that affect one country or region more than another? In this article, Gwen Eudey weighs the benefits and costs of European monetary union and discusses some of the issues involved.
Keywords: Payment systems;
File(s): File format is application/pdf http://www.phil.frb.org/publicaffairs/pubs/ar98.pdf
Provider: Federal Reserve Bank of Chicago
Part of Series: Annual Report
Publication Date: 1998