This paper uses a three-region framework to examine the effects of European currency unification on EMU and US inflation rates. It considers ways in which increased participation in the EMU might influence inflation choices in Europe and the United States. It also considers how alternative...

Preface : the red blanket -- And the weak suffer what they must -- An indecent proposal --Troubled pilgrims -- Trojan horse -- The one that got away -- The reverse alchemists -- Back to the future -- Europe's crisis, America's future -- Afterword : from dissonance to harmony

The International Monetary Fund (IMF) played a ground-breaking role in understanding the financial-sector dynamics of the euro-area crisis. It was the first public authority, and one of the first more generally, to acknowledge the role of the bank-sovereign vicious circle as the central driver...