This Paper considers how the European Union, and more specifically the euro area, can contribute to international … internal stability in the euro area and has promoted a dynamic development of capital markets. But in some respects, monetary … positions on exchange-rate policy, the international financial architecture, and the euro as an international currency. …

conversion rates between the euro and the currencies of EMU members states. Current EU legislation, notably the Maastricht Treaty … prices of EMU member currencies against the euro. Unfortunately, most of these have potentially damaging side effects. One … approach, based on official Stage 2 offers of contingent euro forward contracts with value dates at the start of Stage 3 …

Union. I first show that the Swedish business cycle since the mid-1990s has been closely correlated with the Euro area … economies, suggesting that common shocks have been an important driving force of business cycles in Europe. However, evidence …

We investigate the behaviour of gross capital flows and net capital flows for euro area member countries. We highlight …-deficit countries. Finally, we describe the reforms that can improve macro-financial stability across the euro area. …

The Paper discusses how the EU accession countries should pursue full membership in the EMU: adopt the euro. The key … membership. It should also be sufficient. 3) Convergence, prior to the adoption of the euro, of an EMU candidate’s inflation rate … to its euro area equilibrium inflation rate is helpful but not essential. 4) Real convergence is irrelevant for EMU …

the past experiences of these regimes in Asia, Latin America, Eastern and Central Europe and the ERM I, we develop a …

. The use of the euro as a formal parallel currency in accession countries prior to EMU membership (or even prior to EU …