Autore
Winkler, Bernhard

Titolo
Of sticks and carrots: Incentives and the Maastricht road to EMU
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1997 - Fascicolo: 2 - Pagina iniziale: 1 - Pagina finale: 27

This paper interprets the Maastricht convergence criteria as an incentive mechanism that offers entry into European Monetary Union (EMU) as an uncertain reward for candidate countries' convergence efforts. Similarly, under the 'stability pact' agreed at the Dublin summit in December 1996 countries risk penalties for insufficient discipline inside EMU. The paper suggests a partial trade-off between the entry conditions and the stability pact. Both incentive devices should be designed jointly in order to achieve Maastricht's twin objectives of a single currency for a large enough group of countries and a stable currency, i.e. based on sufficient and durable convergence.



Testo completo: http://hdl.handle.net/1814/611

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