The question whether European Monetary Union should include all the EC countries from the start or should initially be limited to a few core countries is again being discussed more intensely. What advantages would a small EMU have from an economic point of view? Which countries should be its...

Assuming the convergency criteria are not watered down, European Monetary Union will begin on 1.1.1999 with just a few core countries. With the help of the theory of clubs, Professor F. L. Sell analyses the incentive effects of the "monetary club" on founding members and "outsiders".

After almost four decades of price stability, inflation has recently approached historical highs. Initially driven by global energy and food price increases, the magnitude of the surge in inflation caught central banks and markets by surprise. Price pressures are now increasingly broadening to...