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Considers how membership of a Single European Currency would affect Single European Currency members’ national economic sovereignty. First defines concisely national economic sovereignty. Explores economic life in the Single European Currency. A picture of a converged Single European Currency area economy emerges. Then considers what influence Single European Currency members would have on the Single European Currency area’s macroeconomic policy, finding members’ influence, their national economic sovereignty, depends on the Single European Currency’s institutional structure. Explores three institutional structures, a Council of Ministers approach, a federal approach and the Maastricht plan, the European Union’s (EU’s) actual plan for the Single European Currency. Finds that both a federal and a Council of Ministers approach appear to offer Single European Currency members some degree of national economic sovereignty, while the Maastricht plan appears to offer Single European Currency members very little national economic sovereignty. Analyses the Exchange Rate Mechanism (ERM), to assess what national economic sovereignty EU countries currently enjoy. It becomes apparent that in order to prevent excessive exchange rate instability EU countries must set their monetary policies to the satisfaction of the Financial Market, EU free capital mobility undermining EU countries’ national economic sovereignty. The ERM’s and the Maastricht plan’s preference for price stability over democratic accountability leads to an investigation of the significance of a economy’s average inflation rate. Finds evidence of a negative correlation between EU countries average inflation rates and their private sectors level of profitability. Concludes by asking if a Single European Currency, which favours enforcement of price stability over democratic accountability, is good for European business or not.

The focus of this paper is the economic theory of the plans for the European Monetary Union. Part 1 demonstrates that economists, bankers and policy makers know very little about monetary policy. Part 2 explains the errors of the common practice of defining money by its functions. Because any monetary policy must rest on a definition of money it seems reasonable to conclude that a flawed definition might lead to problems with monetary policy. Part 3 applies this insight to the plans for a common currency in Europe. Because of uncertainties about the timing and details of the implementation, some important considerations are necessarily speculative. They are relegated to appendices. Appendix 1 comments on the timing and authorship and responsibility for the official reports with their unspecified authors. Appendix 2 supplies some grounds for doubting the ultimate durability of the European Monetary Union focusing on reasons that are historical, economic and pragmatic. Because the entire movement is driven by politics, not economics, Appendix 3 considers some of the relevant political issues. The conclusions summarize and speculate on possible reasons for successful outcomes.

Reviews the attempts to introduce greater exchange rate stability into the European Union, culminating in the 1992 crisis in the Exchange Rate Mechanism, and the UK’s withdrawal. Outlines the Maastricht Treaty proposals for monetary union by 1999. Finally, reviews the arguments for and against UK adoption of the single currency, drawing, where possible, on the limited empirical evidence.

This article considers the business unit level impact of the introduction of a single currency in the European Community. Most literature to date has concentrated on macroeconomic interpretations of this initiative ‐ the microeconomic issues have received scant attention. The article proposes that all businesses, irrespective of size or market sector, will be affected by the shift to a single currency, even in countries whose governments choose not to partake in the system. To this end business units must give adequate attention to the implications of the change in terms both of strategic and of operational impact. The article suggests potential forms of impact on business units and concludes with a generalised framework of business to manage the process.

Britain’s decision to reject membership of a Single European Currency – the Euro – remains a focal point of contemporary political and economic debate. Both the Danish vote to reject the Euro and the latter’s slide in value have resulted in some anxious moments for those politicians and commentators who previously confidently predicted a rosy future for European monetary integration and stronger trade patterns. At a time when Britain still ponders over the decision of whether or not to join “Euro land” some serious questions need to be asked about the Single Currency’s impact on future economic prosperity, growth patterns and employment. This paper concentrates on monetary adjustment mechanisms in the absence ofa flexible exchange rate regime. It addresses the potential implications of productivity differentials and labour market imperfections, particularly by reference to a lack of European labour market mobility and the impact of European productivity differentials. Using particular aspects of the Scottish labour market, the paper concludes with an assessment of the Single European Currency’s impact on the Scottish economy and highlights the importance of “tradable skills” rather than mobile workers.

This chapter argues that monetary integration must precede, rather than follow, monetary unification, in order to avoid the occurrence of structural and systemic crises. It briefly overviews the relevant literature on european monetary union (EMU) with regard to the criteria to set up an optimum currency area (OCA) according to the mainstream view. It then points out that adopting the euro as single currency for a number of heterogeneous countries led inevitably to a number of major negative effects, so much so because of the counterproductive financial constraints induced by the Euro-area fiscal and monetary policies framework. Particularly, the lack of fiscal transfers between these countries and the dogmatic attitude of the European Central Bank (ECB) as regards its policy strategy and goal increase, rather than reducing, the unemployment rate, and the degree of financial instability across the euro area. In fact, a way out of the euro area exists without renouncing to the (long-run) benefits of monetary integration. It implies that countries whose population suffers most of “fiscal consolidation” introduce their national currencies again, limiting the use of the euro to their central banks only, in order for them to settle all international trade and financial-market transactions carried out by residents in these countries. This monetary–structural reform will be instrumental in increasing financial stability and employment levels across Europe, thereby inducing positive effects also for trade and public finance.

The decision on which countries will participate in European Monetary Union (EMU) is to take place as early as possible in 1998, with the final run in, regarding the technicalities of introducing a single currency, starting on 1 January 1999. With this timetable in mind, examines some of the major issues which will have to be confronted by UK retailers. Even if the UK Government decides to opt out, the increasing internationalization of retailing will mean that UK retailers will have to face a Euro‐denominated environment over a significant range of its business activities. Consequently, by identifying EMU factors which specifically relate to retailing, identifies the key areas which retailers need to consider in planning a strategy to take account of the possibility that EMU will take place in at least some major EU economies.

The British government has promised a referendum on whether the United Kingdom should participate in the European single currency. There are questions about whether the UK population knows enough about economic and monetary union to make an informed decision and from what sources they received that knowledge. The European Commission has instigated an information programme for EMU. The EC sees the system of European Information Relays as an important part of its policy on disseminating information on Europe. This study investigated the role of the Relays in this, and informing the public on EMU in particular. The East Midlands was selected as a case study and a series of interviews were carried out with librarians and users. The librarians believe that the Relays have a role to play as a disseminator of information from other sources, but are hampered in their efforts by a lack of resources, lack of awareness of the EC information programme and adverse user reaction to promotion activities. In addition, there is evidence of apathy amongst potential users, who are passive in their consumption of information on EMU, mainly from mass media sources. While this study is too small to be representative, the findings indicate that the EC should improve the presentation of its publications and better target dissemination to different Relays. The UK government may have to take a more proactive role in informing the British public about EMU. However, the findings also indicate that a bigger problem is the perceived lack of accuracy and neutrality of the UK media on this topic. Since this is a major source of information for the public, this could hamper informed decision making.

This is the second part of a detailed annotated chronology of significant events in the history of money in the context of social, economic, political and technological developments from the dawn of civilization until the closing years of the twentieth century. Part 2 covers events from the start of the industrial revolution onwards. This period saw major changes in the relative importance of coinage, paper money and bank money, as well as the beginnings of electronic money. These changes, and the financial effects of the Napoleonic and World Wars, the rise and decline of the British Empire, the emergence of the United States and Japan, decolonisation and Third World debt, and moves towards a single currency in Europe, are all covered.

The trade liberalising measures of the Single Market of the European Union have had a significant impact on business strategies. The establishment of European Monetary Union is also expected to have an influence on European trade since firms will be more inclined to exploit European markets. This paper brings evidence derived from a survey of South Yorkshire manufacturing companies to look at the impact of the Single Market measures on competition. Parallels are drawn with the likely reaction to the extra competition brought about by the establishment of the European Monetary Union.