London Business School Economics Discussion Paper
Выпуски:
Опубликовано на портале: 10-12-2003
Richard Portes
London Business School Economics Discussion Paper.
2001.
No. 2001/4 .
This paper analyses the issues raised by EMU for the relationships between the euro
area and the international financial system. The depreciation of the euro exchange
rate since the beginning of EMU has attracted most attention. The paper argues that
none of the conventional explanations is supported by theory or the data and that
a substantial appreciation will be required to bring the rate to a sustainable long-run
equilibrium. It discusses exchange-rate intervention and suggests that the authorities
should take a more active policy stance. The paper assesses the role of the euro
as an international currency and the underlying developments in the capital markets
and foreign exchange markets. It concludes with discussion of policies towards the
international role of the euro, in areas such as: data needs; financial market developments;
euroisation; EMU and the international financial architecture; and the role of the
Euro Group of finance ministers.

