EMU and Economic Policy in Europe

Edited by Marco Buti, Director of the Economies of the Member States, European Commission, Brussels, Belgium and André Sapir, Professor of Economics, ECARES, Université Libre de Bruxelles, Belgium

• Contents: Foreword by Commissioner Pedro Solbes PART I: OVERVIEW 1. EMU in the Early Years: Differences and Credibility Marco Buti and André SapirPART II: MONETARY POLICY 2. Monetary Policy in the Early Years of EMU Jordi Galí3. The ECB’s Monetary Policy Strategy: Responding to the Challenges of the Early Years of EMU Vítor Gaspar, Klaus Masuch and Huw Pill4. Monetary Policy Transmission in EMU Massimo SuardiPART III: FISCAL POLICY 5. Fiscal Policy and EMU: Challenges of the Early Years Antonio Fatás and Ilian Mihov6. Fiscal Policy in the Early Years of EMU Anne Brunila and Carlos Martinez-MongayPART IV: POLICY COORDINATION 7. The Functioning of Economic Policy Coordination Jürgen von Hagen and Susanne Mundschenk8. Economic Policy Coordination in EMU: Accomplishments and Challenges Servaas Deroose and Sven Langedijk9. The EMU’s Economic Policy Principles: Words and Facts Jean Pisani-Ferry PART V: LABOUR MARKETS 10. EMU Labour Markets Two Years On: Microeconomic Tensions and Institutional Evolution Giuseppe Bertola and Tito Boeri11. Wage Discipline in EMU. A Feature of the Early Years. Only? Karl PichelmannPART VI: FINANCIAL MARKETS AND THE INTERNATIONAL FINANCIAL SYSTEM 12. EMU and Financial Market Structure Harry Huizinga13. The Euro and the International Financial System Richard Portes14. The Euro and the International Monetary System Johan Baras, Reinhard Felke and Daniel DacoPART VII: THE FUTURE OF EMU 15. EMU and Enlargement Barry Eichengreen and Fabio Ghironi16. EMU – The First 10 Years: Challenges to the Sustainability and Price Stability of the Euro Area – What Does History Tell Us? Lars JonungReferences Index

'All the economists who have contributed to this volume are both distinguished scholars and active participants in the policy debate. Over the years, they have greatly helped policymakers, at the national and Union levels, to identify and understand the difficult policy choices involved in the running of EMU. I am grateful for their contribution to the success of the euro.'