The formation of a monetary union by 11 European countries has received a lot of notice from the press since January 1, 1999, when the union's common currency, the euro, was officially introduced. To facilitate adoption of a single currency, these same countries have established a central bank...

As an introductory chapter, this paper provides a summary of various issues pertaining to economic adjustments after the launching of the euro as a single European currency. Monetary union is viewed as a process of integration of capital markets and real sectors.