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Economic Commentary

A Market-Based View of European Monetary Union

The European Economic Community will benefit enormously from the creation of a single internal market by 1992. Nevertheless, the free movement of financial capital could force Europe to choose between fixed exchange rates and monetary independence. This Commentary discusses the alternatives involved with this choice, one of which is the creation of a European monetary union.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Hoskins, W. Lee. 1989. “A Market-Based View of European Monetary Union.” Federal Reserve Bank of Cleveland, Economic Commentary 4/1/1989.