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July/August 1995, 
Vol. 77, No. 4
Posted 1995-07-01

EMU: Will It Fly?

by Patricia S. Pollard

Will a monetary union be established in Europe before the end of this century? Prior to the establishment of a monetary union within the European Union, countries are expected to meet designated criteria regarding their interest rates, inflation rates, government finances and exchange rates. These criteria were designed to ensure a commitment to price stability and economic convergence among potential entrants. Patricia S. Pollard examines the progress that has been made in fulfilling these criteria and the countries’ prospects for meeting the entry criteria. Furthermore, she examines the options available to the European Union if there aren’t enough countries to fulfill the criteria before the target date for monetary union.