European Monetary Union and International Currencies in a Tripolar World

This paper examines the prospective implications of European Monetary Union for the international monetary system. It concentrates on the prospective role of the european single currency as an international vehicle and reserve currency, and on implications of the single currency for the coordination of monetary and fiscal policies in a tripolar world consisting of the US, Europe and Japan. The paper draws lessons from the experience of sterling and assesses the costs and benefits of EMU in a tripolar world.

in Canzoneri M., V. Grilli and P.R. Masson (eds), Establishing a Central Bank: Issues in Europe and Lessons from the US, Cambridge, Cambridge University Press. (with Richard Portes).