Monetary Union in Europe has been the natural response to the combined desire of stabilizing intra-European exchange rates and of lifting permanently all capital controls. The commitment to stable exchange rate has long been rooted in policymakers' conviction that trade integration requires...

This paper discusses the relevance of the Balassa-Samuelson effect for the transition economies since 1990. Their experience is consistent with this hypothesis and the further implications of this are discussed especially in regard to EMU targets for exchange rate stability and inflation.

This report examines the process of economic and financial integration in East Asia in the light of Europe's experience. The report provides a comprehensive analysis of East Asian monetary and financial integration process (including a deep analysis of East Asia's response to the 1997-98...