Monetary Discipline and Cooperation in the European Monetary System: A Synthesis

摘要: This paper tries to explain how, despite its fundamental asymmetry, the European Monetary System may benefit all members. I argue that high-inflation members obtain benefits of increased monetary discipline, while others experience improvements in their international competitiveness. For low-inflation members, moreover, incentive disinflate increases as a result EMS membership. Finally, membership for countries are secure; those with higher inflation, gains from depend on variety factors whose net effect is uncertain.