If Stage Three of EMU starts on 1 January 1999, transition issues remain on two time scales. Until 1 July 2002 …, national currencies and the euro coexist as legal tender. We argue that intra-EMU currency risk exists in principle during that … period, but that no EMU member can be forced out through speculative attacks. Cohabitation of Ins and Outs has an open …

E(M)U members: the consequences of the Stability and Growth Pact for fiscal-financial sustainability and macroeconomic … restricted to E(M)U members. Poor communication, cooperation and coordination between the fiscal and monetary authorities can be …

policy, where the main features characterizing the policy-making are similar to those in EMU. National governments choose the …

The main issue in the early years of EMU is one of credibility. On one hand, high exposure to asymmetric shocks and low … adaptability (be it in terms of stabilization or adjustment) to both symmetric and asymmetric shocks make the early years of EMU … potentially problematic. On the other hand, significant economic differences between EMU countries raise questions regarding the …

. The model allows an evaluation of the deficit and the debt prerequisites for EMU set by the Maastricht Treaty: they are …