The Likelihood of European Monetary Union
Posted: 12 Sep 1996
Date Written: Undated
Using information contained in forward interest rates, this paper attempts to assess the probability that European Monetary Union (EMU) occurs and that a particular country participates. It is shown that since the Madrid summit, the public has become increasingly optimistic about the realization of EMU. Furthermore, Germany, the Netherlands, France and Belgium are found to be the most likely candidates for the single currency project.
JEL Classification: F33
Suggested Citation: Suggested Citation