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Keywords:Treaty on European Union (1992) 

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Europe and the Maastricht challenge

The uncertainty caused by the exchange rate crises of 1992-93 led to two questions: Is monetary union still feasible? What strategies are best for achieving convergence according to the Maastricht criteria? This article addresses these questions by examining the progress made by the five major European Union countries in satisfying the Maastricht criteria and the two crucial impediments facing these countries--disparities in real exchange rate convergence and fiscal imbalances--and alternative strategies to deal with these impediments. Overall, our analysis suggests that the prospects for ...
Research Paper , Paper 9616

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