Monetary Union and Economic Growth

National Bank of Belgium Working Paper No. 10

27 Pages Posted: 9 Nov 2010

See all articles by John Vickers

John Vickers

University of Oxford - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: May 1, 2000

Abstract

This paper discusses possible links between monetary arrangements in particular monetary union and economic growth. It is stressed that growth depends ultimately on how the real economy works: there is no monetary magic that can conjure up growth. But monetary policy can contribute to conditions for sustainable growth by securing and maintaining price stability; monetary union might extend this. It might also deepen the single market. The elimination of nominal exchange rate movement among members of the union removes some sources of shock but also some ways of adjusting to shocks. This underlines the importance of other adjustment mechanism especially supply-side flexibility, which is crucial for growth in any event.

Suggested Citation

Vickers, John, Monetary Union and Economic Growth (May 1, 2000). National Bank of Belgium Working Paper No. 10, Available at SSRN: https://ssrn.com/abstract=1705102 or http://dx.doi.org/10.2139/ssrn.1705102

John Vickers (Contact Author)

University of Oxford - Department of Economics ( email )

Manor Road Building
Manor Road
Oxford, OX1 3BJ
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
75
Abstract Views
523
rank
255,546
PlumX Metrics