1 January 1999 saw the start of the third and final phase of European Economic and Monetary Union (EMU). Ten years on … of monetary union from a number of angles. Monetary policy under EMU managed to secure historically low inflation … flexibly in order to accommodate euro area banks’ demand for liquidity. Before EMU, financial crises tended to hit countries …

analysis suggests that, given EMU’s present political-economic set-up, i) the bail-out was unavoidable, ii) the lengthy process … with a future moral hazard problem. Based on our analysis, we suggest that the EMU’s institutional design could be improved … processes as well as the conditions and parameters on which the scope and limits of fiscal redistribution in EMU depends. In …

years. Some studies aim at analysing the suitability of these Euro aspirants for currency union with EMU by evaluating the … present EMU and use a structural VAR approach to evaluate EMU suitability of the candidate countries. To correct for the …

Leaving EMU would create great legal uncertainty and costly litigation and would hence involve extremely high costs for … scenarios, whereby particular emphasis is paid to the case where a country decides unilaterally to leave EMU either because of …, implying a non-trivial possibility of escalating tension among the EMU members. …

Since the EMU members have abandoned their national monetary policies and their exchange rate such as adjustment …