| Summary: | In his excellent paper (Charles Wyplosz (2006) European Monetary Union: the dark sides of a major success. Economic Policy, 21 (46), p. 207-261), Charles Wyplosz (CW) covers a lot of ground on the broad issue of macroeconomic policy in the Eurozone since 1992. In particular he looks at the Maastricht convergence criteria, the stability and growth pact and monetary policy strategy. Overall, he concludes that the Euro enterprise has been a major success but there have been lots of secondary problems. In this, I would agree. In what follows, I first discuss the macroeconomic performance of the major countries of the Eurozone since 1992 relative to the UK and the US. Then, I look at some specific issues including fiscal policy rules, the inflation target and asymmetric shocks.
|
|---|