Working Paper
Is the ECU an optimal currency basket?
Edison, Hali J. (1986)
Recently the role of the ECU has increased and there has been concern whether it is sustainable. The first part of this paper examines the composition of the ECU and investigates the impact of changes in this composition on the value of the ECU. The results show that when there is little exchange rate variability among the currencies that comprise the ECU or when the changes in composition are small the value of the ECU remains stable. The second part of this paper constructs an alternative, optimal basket of currencies for Germany and compares this basket to the ECU. The path of the optimal ...
International Finance Discussion Papers , Paper 282

Working Paper
The hedging performance of ECU futures contracts
Sienkiewicz, Stanley J.; Saunders, Anthony (1987)
Working Papers , Paper 87-15

Journal Article
Why is Europe forming a monetary union?
Eudey, Gwen (1998-11)
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 ...
Business Review , Issue Nov , Pages 13-21

Journal Article
Fiscal constraints in the EMU
Spiegel, Mark M. (1997)
FRBSF Economic Letter

Journal Article
Decision time for European Monetary Union
Whitt, Joseph A. (1997-07-03)
If the plans of European governments for economic and monetary union by the end of the decade are realized, a new common currency called the euro will be in use in at least a few western European countries within five years. Even earlier, starting in 1999, a new European Central Bank is slated to take control of monetary policy in the initial member countries. ; This article examines the economic and political factors that will determine whether monetary union proceeds on schedule and, if so, which countries are likely to be initial members. There is little chance that most of the countries ...
Economic Review , Volume 82 , Issue Q 3 , Pages 20-33

Working Paper
The dollar as an official reserve currency under EMU
Leahy, Michael P. (1994)
This paper analyzes official reserve-holding behavior in the EU countries in an attempt to assess the effect EMU might have on official holdings of dollar reserves. A wide range of projections are presented for the effect of EMU on the overall demand for reserves, some based on earlier research results and some on new estimates. In the estimation and simulation of the behavior of EU countries in the last half of the 1980s, the contributions of country-specific factors appear to swamp the systematic components that had been isolated in earlier research. Earlier research results are also used ...
International Finance Discussion Papers , Paper 474

Journal Article
The launch of the euro
Iyigun, Murat F.; Bertaut, Carol C. (1999-10)
The introduction on January 1, 1999, of the euro--the single currency adopted by eleven of the fifteen countries of the European Union--marked the beginning of the final stage of Economic and Monetary Union and the start of a new era in Europe. The creation of a single currency and a single monetary policy has provided both extraordinary challenges and exceptional opportunities within Europe. This article reviews the organization, objectives, and targets of the euro area's new central bank and discusses some of the early challenges it has faced in setting and implementing monetary policy with ...
Federal Reserve Bulletin , Volume 85 , Issue Oct

Working Paper
Public finance and coordination problems in a common currency area
Sibert, Anne C. (1991)
Research Working Paper , Paper 91-06

Journal Article
European Monetary Union: how close is it?
Chriszt, Michael J. (1991-09)
Economic Review , Issue Sep , Pages 21-27

Journal Article
The European system of central banks
Wynne, Mark A. (1999-01)
On January 1, 1999, the European System of Central Banks (ESCB) began conducting monetary policy for eleven of the fifteen nations of the European Union, formally creating an economic and monetary union. The ESCB is governed by the decision-making bodies of the European Central Bank (ECB) and manages Europe's new currency, the euro. The structure of the ESCB is in many ways similar to that of the Federal Reserve System, with the ECB playing a role similar to that of the Board of Governors and the various national central banks occupying positions not unlike those of the regional Reserve ...
Economic and Financial Policy Review , Issue Q I , Pages 2-14