A half-dozen experts look at the difficulties of melding the regulatory philosophies and practices of the dozen members of the EEC into a single financial Eurosystem.European Economic Community

Kathryn Moran

English

Research Papers in Economics

A h lf d z n  xp rt  l     t th  d ff   lt   
 f   ld n  th  r   l t r  ph l   ph     nd
pr  t      f th  d z n    b r   f th  EEC
 nt      n l  f n n   l E r    t  .
I  E r p  r  d  f r    2?
K thr n M r n
 h   dv nt  f th  EEC      2
   n     pl n f r    n    
 nt  r t  n h   E r p  n
r   l t r   nd b n  r   x   
 n n  th    r  n    f th  r
f n n   l    t   .   r     ,    2   r l 
   n  f n  t n n  th  r  x  t n  r   l t  n 
 nd pr  t    .   r  th r , h   v r,  t   ll
   n    h l  n        f l f .
At th    v  b r   8    nf r n    n
 l b l z t  n,     p n  r d b  th    d r l
    rv    n   f Ch       nd th  M d A  r 
    In t t t  f r   bl     l         r h,  
p n l  f b n  r , r   l t r ,  nd    d     
  th r d t  d       th    pl   t  n   f    2.
  n l  t  r pr   nt n  th  Un t d K n d  
(  v d  l   ll n,     hb r   h Un v r  t  ,
th    d r l   p bl    f G r  n  (  nd ll  .
  zd n ,   d r l     rv    n   f S n  r n 
      , It l  (G  r     . Sz   , Un v r  t   f
     ,  r n   (   n    rr    t t,   n   f
 r n   , And S  tz rl nd (G  r     h, S    
  t  n l   n   d       d d v l p  nt   n
th       ntr     nd   r pr   nt t v  fr   th 
  n  f r Int rn t  n l S ttl   nt  (    ph  .
     n n   pr v d d  n  v rv     n th   f 
f  t   f  l b l z t  n thr   h  t E r p .
S     r    r  r  d  th n  th r 
 h  p n l    b r  r pr   nt n  th 
Un t d K n d  , th    d r l   p bl    f
G r  n ,  nd S  tz rl nd v    d th  E r p 
   2 pl n     n  xt n   n  f  x  t n  b n  n 
pr  t    .   nd ll   zd n ,  n  ddr    n  th 
G r  n b n  n     t  , n t d th t "    
 r    th t th   v l t  n  f th  G r  n b n  
 n   nd f n n   l   r  t  d    t   ll     ht
b    pr   r  r  f  h t   ll h pp n  nt rn t  n 
 ll , p rh p   n l d n  pr v d n      d l  f
th  p t nt  l p l t   l  h ll n    p   d b 
th    d v l p  nt ." Sp    n   f b n  n   n
th  Un t d K n d  ,   v d  l   ll n n t d
th t th  U.K.  l   h     v r   p n    t  
 h n  t       t   h l   l  b n  n , b t th t
tr d t  n l,  nt rn l r  tr  t  n   nd th  h  h
 ntr     t  t  th  r t  l b n  n   nd  tr     
l  v   t v ln r bl  t   l b l   r  t pr    r  .
  rh p  th     ntr    th th  l n   t  xp  
r  n    n  nt rn t  n l f n n      S  tz rl nd,
 h  h h   b  n      r    f   p t l  nt rn t  n 
 ll    n   th    th   nt r . G  r     h  b 
  rv d th t th  l     f r  tr  t  n   nd r   l  
t  n   n d    t    nd  nt rn t  n l f n n  ,
   pl d   th th  b n  n     r    l   ,   rv d
t       S  tz rl nd  n  ttr  t v     r    f
  p t l f nd .     v r,  n th   v   f E r p 
   2, S  tz rl nd    f nd n  th t  t     p t  
t v   d       r d n , th  r   lt  f l b r l z t  n
 f b n  n  l     n  th r    ntr   .
 h  p n l  t  r pr   nt n   r n    nd
It l  v    d E r p     2       h ll n   f r
b th r   l t r   nd b n  r   n th       ntr   .
In  r n  ,    n    rr    t t  t t d, r   l t r 
 nd    b r   f th  f n n   l   rv           
n t  h v  r    n z d th  n  d t  b        r 
 nt rn t  n l  n  h r  t r. In th  l  t d   d ,
 r n   h    n r    d  t  p rt   p t  n  n th 
 nt rn t  n l b nd   r  t fr    %  f  t 
Gr         t    r d  t t   0 60%.
K thr n M r n         t nt  d t r  f E  n    
  r p  t v    t th    d r l     rv    n 
 f Ch     .
 E E A   ESE  E  A K O  C ICAGO   H   v r, P t t d d n t     d r   l t  n   
 n  n v t bl    n     n    f th   p n n   f
th  f n n   l   rv       r  t. R th r, r   l  
t r  "n  d n     pr    t    ppr   h  t  th  
d v r  f  d  nf r  t  n" t   n   r     l b l  
z t  n. Th t   , h  b l  v d th t r   l t r 
h v   n   p rt nt r l   n th   l b l z t  n  f
Fr n h b n  n ,  nd th t th  r   l t r     t
r    n z  th    nd   t     rd n l .
   r     z   ,  n th   th r h nd, v    d
 t l  n r   l t r       b rr  r t  th   l b l z  
t  n  f  t l  n      r   l b n  .  n  t l ,
     r   l b n    p r t     "th   r  thr   h
 h  h th    v rn  nt   n t r  p l       r 
  t v t d  nd   r     pt    l   ll    p r t d
b d   "   th   v r  l   t d r n    f p r    
  bl    t v t   . Th r f r ,   lt  f n t  n l
f n n   l   rv     f r   h v  d v l p d th t
 ff r   n  b n  n    rv     d    t   ll ,
 h l   t l  n      r   l b n   h v  b  n
b   n  f r   n br n h    n  rd r t   n r    
th  r n    f   rv     th     n  ff r  n th 
 nt rn t  n l   r  t.      r   lt,  t l  n     
  r   l b n    r  l   n    r  t  h r  d    t  
  ll  t  n nb n  f n n   l   rv     f r    nd
t  f r   n b n    v n    th    r     n n    r 
  t  h r   br  d.
J   ph B    n n   f th  B   pr v d d  
br  d r v     f  l b l z t  n  n   r p .
 h l    n  rr n  th t   n     b r   f th 
  r p  n      n t  h v  b   n t    v 
t   rd  l b l z t  n, th   h  r v r  t   f f  
n n   l  nd r   l t r  pr  t     th t n    x  t
 n   r p   h ll n   th           f th     2
pl n. "  th n   n      t  l     t f n n    n
  r p          b     ll    d  l    n   , ...   
  d v l p n     ntr ...   th   n     t r  h  h
h   b  n, f r   n  b r  f    r , pr t  t d
fr   f r   n    p t t  n,  h r  pr      nd
         n   r  v r   tr n l  r   l t d,  nd
 h r    v rn  nt h   pl   d   v r   tr n 
r l   n   pp rt n  th t  nd  tr ... Th      nd
   t r    th    r     p t t v ... h r     
h v    b t nt  l d r   l t  n,   b t nt  l     
p t t  n  n pr     nd          n ,  h r  th 
 nd  tr       bj  t t  l r    l   nt   f f r   n
   p t t  n,  nd  h r    v rn  nt h     n 
   d t   t        fr    v rr   l t  n." D  
t  th      pl x t   n th    r p  n f n n   l
  r  t, n   n  f r   f b n  n   r r   l t  n
 t nd    t    th    l t  n f r   r p     2.
B    n n    r  d   th th   th r p n l  t  th t
  v rn  nt r   l t  n pl    v r  n  r l    n
th  f n n   l   rv      nd  tr   n   r p .
H   v r,  v n  n    ntr    th t      t  h v 
f  rl   p n    t     r v r    t v   n v r  l
b n  , r   l t  n pl       r  t r r l  th n  n 
   ht  xp  t. F r  x  pl , d  p t    r 
  n    h  t r   f  n v r  l b n  n ,  t  b nd
  r  t    h  hl  r   l t d. Th  ,  v n  n
pr  r    v     ntr    th   ff  t   f   v rn 
  nt   ntr l   n b  f lt  n  nt rn t  n l f n n 
   l   rv    .
  t  v r  n  h     n  rn 
 h n th  p n l  t   ddr    d th  r   n 
  rn   b  t   r p     2, th  r r  p n      r 
   t  v r  d. Ll   ll n      h l   l  b n  
 n   n th   . .     lr  d   l b l.  t     n th 
r t  l    t r th t th   r  t  t  nt rn l r  tr   
t  n   x  t  nd  h r  h  f  nd th   r  t  t
n  d f r  dj  t  nt.      r   lt, th  r t  l
b n  n   tr  t r    ll b  v ln r bl  t   l b l
r  tr  t r n  pr    r .
P zd n  b l  v d th t   r  n b n    r 
 h  d  f th  r t   . H   v r, h    n  d p  
l t   l   n  rn , b th   th n   r  n   nd
  th  t,  b  t th    n  ntr t  n  f    n    
p   r th t  n v r  l b n  n  pr   nt . Th r 
h v  b  n  tt  pt   n   r  n  t  l   t,
thr   h l    l t  n, th  p   r   f  n v r  l
b n  ,  nd h  b l  v d th t th      l r l    l  
t v   ff rt     ld  r     n th    r p  n     
  n t  p  t    2.
    rd n  t  P zd n , th    r  n     r  
t      r  t pr   nt    v r  r  l b rr  r t   l  
b l z t  n f r th    r  n f n n   l   rv    
 nd  tr .  t      bj  t t    n  r   l t  n   nd
h   n t   d  th   nr  d   n th   nt rn t  n l
  r  t th t   r  n b n   h v .
R  h  xpr    d       l r   n  rn r   rd 
 n  th            r t      r  t. Th       
    r t    t x l   ,    pl d   th   f  l r  b 
th     b r   f th   t      r  t t     p t 
 n  n  nt rn t  n l l v l, h v       d th 
          r t     nd  tr  t  l     t   d  .
F rth r  r , R  h       p r  h  l     n th 
      f n n   l      n t  th t h    ll   d
pr    f x n    r    nt   nd  th r r  tr  t v 
pr  t     t   x  t.  n  rd r t     p t   nt rn  
t  n ll , h   r   d,       b n      t  h n  
th    pr  t      nd b   n t    pr v  th  r
  rv    t  th  r    t   r .
 n Fr n  , P t t f  nd th t th  Fr n h
  v rn  nt  n   n r l  nd th    n t r  r    
l t r   n p rt   l r n  d t        dj  t  nt .
20
	
  t:0 0 4 C  E S EC I ES  n  , h   t t d, h v  t   n  t p  t  b     
 nt rn t  n l. It    th  r   l t r   h     t
b   n t  th n   l b ll —b th  n th   ff  t   f
th  r p l       nd  n th  r r l t  n    th r   l  
t r  fr    th r    ntr   .
Sz      r  d th t r   l t r     t br  d n
th  r   tl   .     r   d th t It l  n r   l t r 
   t  nl r   th     p   f p r     bl  d     
t   b n  n    t v t   . A  l n     d    t  
     r   l b n  n  r    n  h  hl  r  tr  t d,
It l  n b n     ll b   n bl  t     p t  d  
   t   ll   n  n     l f  t n    th f r   n
b n  .
     n n  f  nd   n  d ff r nt b rr  r  t 
 l b l z t  n. G v rn  nt pl      p rv   v 
r l   n f n n   l   rv     thr   h  t E r p .
  t, th t r l     d ff r nt fr      ntr  t 
   ntr . In         ntr   ,   v rn  nt r    
l t  n    l   t d t    f    r   ,    h      p t l
  r  t ,  h l   n  th r    v rn  nt r   l  
t  n    v   bl   n v rt  ll   ll   p  t   f f n n 
   l   rv    .
     n n   l    r   d th t th r         n 
 r l      n  pt  n  b  t b n  n   n E r p .
   p t  th   dv nt  f  n v r  l b n    nd th 
 pp  r n    f   h  hl   nt rn t  n l b n  n 
   n ,    n     p   r  n E r p     n t   n 
  ntr t d.   th r,   n  f n n   l   rv      r 
h ndl d b     ll r    n l b n    r  n   f  
n  b r  f n nb n  f n n   l  n t t t  n ,    h
   f n n      p n     nd tr  t    p n   .
 h        pr   nt   v r  r  l  b t  l  t  r p d
 l b l z t  n.
C    n  r  nd
It      n th  r l   f r   l t r  th t th 
p n l  t  f  nd      n  r  nd. A    v d
 l   ll n  t t d, ",S  I th n   f  l b l z t  n   
 b  t    p t t n... t    b  t    p t t  n
b t   n f n n   l    t   ."  h  p n l  t 
  r  d th t  f E r p     2       n  t    r ,
r   l t r     t r    n z  th  r r l   n th 
pl n.  h     ll n  d t  r v    th  r d f n t  n
 f b n  n   nd th  r  tr  t  n  th   h v 
pl   d  n b n  .  h     ll n  d t   nh n  
th   r     h r  th    lr  d  h v   n  d  ,
   h    d p   t  n  r n  ,  nd r r t n ,  r
 n v r  l b n  n .  h      t b     r   f  nd
     n   t    th r   l t r   n  th r    n 
tr   . M  t   p rt ntl , th      t      t th  r
f n n   l   rv      nd  tr  d    t   ll   n
 rd r f r  t t     p t   l b ll . If th   d ,
th n th  E r p  n      n t    ll b  pr p r d
t     t th   h ll n     f    2. If th   d  n t,
th  p       t      n r   d   r b d b  G  r   
Sz             t  p   —"If h    r l    ll
b  th  r l , l t    l    f r th     t h  p t bl 
h   ."
F D R L R   RV  B N   F  H     
	
2 

Is Europe ready for 1992?

http://www.chicagofed.org/digital_assets/publications/economic_perspectives/1990/ep_may_Jun1990_part2_moran.pdf

Is Europe ready for 1992?

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