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Alice in Euroland
Author(s) -
Buiter Willem H.
Publication year - 1999
Publication title -
jcms: journal of common market studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.54
H-Index - 90
eISSN - 1468-5965
pISSN - 0021-9886
DOI - 10.1111/1468-5965.00159
Subject(s) - parliament , transparency (behavior) , accountability , voting , economic and monetary union , monetary policy , currency , maastricht treaty , inflation (cosmology) , exchange rate , economics , european union , political science , public administration , international economics , law , european integration , finance , macroeconomics , politics , physics , theoretical physics
The article contains a detailed critique of the common currency arrangements of the Economic and Monetary Union, embodied in the laws and emerging procedural arrangements that govern the actions of its key institutions: the European Central Bank and the European System of Central Banks. The main message here is, ‘Great idea, shame about the execution’. A number of improvements are then proposed. Some of these require amending the Treaty, including an end to the rule that each EMU member’s national central bank has a seat on the Governing Council or the removal of the power of the Council of Ministers to give ‘general orientations’ for exchange rate policy. Others, notably in the areas of accountability, openness and transparency, could be implemented immediately, including publication of voting records, minutes and the inflation forecast. Improved arrangements are also advocated for the co‐ordination of monetary and fiscal policy. And the article calls for a European Parliament that can both bark and bite.