The Mirages of Nominal Illusion: Variations on Convergence

Jérôme Creel (1)

1 OFCE - Observatoire français des conjonctures économiques (Sciences Po)

The euro, the European single currency, was launched in Europe on 1 January 1999, and the subsequent Economic and Monetary Union (EMU) now comprises virtually all European Union (EU) members, namely twelve countries out of fifteen; the United Kingdom, Denmark and Sweden chose to opt out. However successful, economic policy management has never produced a perfect solution to a certain number of fundamental issues. How can a single monetary policy be made compatible with specific economic backgrounds (economic cycles, inflation); independent and yet capped fiscal policies; distinct labour markets; and different economic and social patterns?

Mots clés: European Union; European Central Bank; Monetary Union; Nominal Interest Rate

Domaines: Economies et finances

Jérôme Creel. The Mirages of Nominal Illusion: Variations on Convergence. Fiorella Kostoris Padoa Schioppa; Jean-Paul Fitoussi. Report on the State of the European Union, Palgrave Macmillan, pp.59 - 70, 2005, 9781403917126. ⟨hal-03398105⟩