The Maastricht convergence criteria : their adequacy for economic and monetary union

Abstract

The European Economic and Monetary Union, if and when it goes ahead, will have global economic implications, with the euro becoming an important international currency. This dissertation gives a comprehensive overview of the history of the Economic and Monetary Union, explaining its existence within the framework of the Optimal Currency Area theory. It examines in detail the aim of each of the convergence criteria required of countries joining the Economic and Monetary Union. It assesses whether the criteria are sufficient to create an Optimal Currency Area, the extent to which they can be achieved by European Union member countries, the likelihood of their being rigidly applied at the point of formation of the Economic and Monetary Union and whether the criteria will continue to be followed by EMU Member States and non EMU Member States.