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".

Two developments are currently shaping Europe's financial and foreign exchange markets: Innovations, including the private use of the ECU, and the erratic fluctuations of the US dollar. Professor Nydegger analyses the causes and effects of these developments from the perspective of the world...