Structural Reforms and the Enlargement of Monetary Union
CESifo, Munich, 2003
CESifo Working Paper No. 1057
The paper addresses the question what effects the enlargement of a monetary union will have on necessary structural reforms in the (low distortion) member countries and the (high distortion) candidate countries. While monetary union lowers reforms in the candidate countries, members of the monetary union will increase their reform efforts. The paper also derives the conditions under which countries agree to an enlargement of monetary union.