Economic and Monetary Union in Europe - Assignment Example

Only on StudentShare

Extract of sample
Economic and Monetary Union in Europe

When the concept of European Union was initially proposed, people thought it as a simple regional cooperation to exploit the possibilities of globalization. The concept of Economic and Monitory Union (EMU) in Europe was discussed earlier, but it failed to materialize because of various reasons. “The immediate impulse that led to the relaunch of EMU in the late 1980s was in the prospect of the completion of the Single Market”. “On December 10, 1991, at the Maastricht summit, the member states of the European Communities adopted the treaty on European Union. It amends and extends the 1957 treaty of Rome which established the European Economic Community”. This paper analyses the economic and monitory unions in Europe. The economic and monitory union (EMU) in Europe was established in 1999. The EMU has two components; an exchange rate union, and complete convertibility. Moreover, there are a number of alternative sets of monetary arrangements that are in theory consistent with monetary union such as currency union, exchange rate union, free inter-circulation union, parallel currency union etc. The necessities of a single currency in the integration process forced EU to think in terms of a single currency under the control of EU rather than the individual member countries. EU is responsible for determining the exchange rates, interest rate and other monitory polices. Individual countries do not have the authority to print more currencies or Euros than prescribed by the EU. ...Show more

Summary

The concept of an international monitory system has evolved during the initial half of twentieth century as a result of the 1930 financial crisis and the problems faced by the countries. The idea of the system is that it provides appropriate means for different nationalities…
Author : abigail92
Economic and Monetary Union in Europe essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Economic and Monetary Union in Europe"
with a personal 20% discount.
Grab the best paper

Related Essays

The Development of Second World Countries in the European Union
The different countries that are a part of the European Union have a different status in terms of economy, politics and the social well – being within the nations. The differences between second world countries have created a gap in the past decade, specifically in terms of economics.
12 pages (3000 words) Assignment
Development within the European Union of the Second World Countries
Development within the European Union of the Second World Countries. This paper defines and identifies Second World countries within the European Union and focus the discussion on the process of the development these countries went through. All ten Second World countries (Bulgaria, the Czech Republic, Estonia, Latvia, Poland, Romania, Slovakia, Cyprus, Malta and Slovenia) in the EU had gone tremendous changes in their political, economic and social way of life that in the eyes of the global market, these countries are still in the process of transition and can be also classified as Transition countries.
35 pages (8750 words) Assignment
European Monetary Union
Under a permanent fixed exchange rate regime, it has been simultaneously iterated that nations reflecting the practice are provided greater price stability than if there is a fluctuating exchange rate between participating nations. This simply means that shocks in different regions within the bloc can cancel each other out and whatever disturbance is set to occur, it becomes relatively smaller since the area is increased (Salvatore 2001).
4 pages (1000 words) Assignment
The Development of Second World Countries in the European Union
The differences between second world countries have created a gap in the past decade, specifically in terms of economics. The development of the
12 pages (3000 words) Assignment
Assignment 2: The Fiscal and Monetary Policy and Economic Fluctuations
Monetary policy on the other side refers to actions that can be taken by the central bank to either slow or ignite the economy. Both Fiscal and monetary policies have a way of affecting the economy either positively or negatively. With reference to the
4 pages (1000 words) Assignment
What are the principal institutions of the European Union To what extent do these institutions engage with the sources of EU law
They include the council, court of justice, the European commission, the central bank, European parliament and the court of auditors (Cini and Borragán 2010, p.34). These institutions are independent and also
6 pages (1500 words) Assignment
Which economic theory has shaped the British Economy more: Keynesianism or Neo-liberalism
It is interesting to know the historical background and theoretical schools which influenced modern Britain economically.
6 pages (1500 words) Assignment
Economic issue
2. IMF has significant influence in the developing economies where it assists in development agenda. However, it is important to note that it has always come up with some economic restructuring policy that affects the citizens.IMF have in some instances
1 pages (250 words) Assignment
International Environment & Business and Europe
The deepest manifestation of economic integration, an economic union adds to a typical market the need to fit various key policy ranges. Most outstandingly, economic unions oblige formally composed financial and monetary policies and work market, territorial improvement, transportation and modern policies.
5 pages (1250 words) Assignment
Monetary Policy, Fiscal Policy, Business Cycles, and Economic Growth
Multinational corporations in Malawi will reduce their investments. Foreign Direct Investment stimulates economic growth and reduces the level of poverty. So a decrease in foreign direct
2 pages (500 words) Assignment
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT