Economic and Monetary Union.

The first 200 words of this essay...

ECONOMIC AND MONETARY UNION

For many, the launch of euro bank notes and coins in 2002 will symbolise the greatest achievement in post war European integration since the Treaty of Rome. For others it represents a premature step on the road to closer co-operation. This analysis will approach the contentious issue of Economic and Monetary Union by drawing upon two related themes: adjustment and co-ordination. The first will be situated within the debate surrounding the pros and cons of EMU participation. The second will consider the actual operation of EMU and the policy architecture, which governs its behaviour. The investigation will conclude with a brief introduction to the debate surrounding the UK's involvement with Economic and Monetary Union. But first there will be a short consideration of the political issues relating to EMU.

THE POLITICS ECONOMY OF EMU

As is usual in the case of the EU it can be argued that EMU is an economic means to a political end, increasing political integration. EMU had its political roots in the problems of the EMS, principally that for a stable system other Member States had to adjust their economic policy to conform to Bundesbank monetary policy. It