Comments on Chapter 2 – Theoretical issues pertaining to monetary unions
Pages 16

Bennett McCallum’s analysis of the two issues that he examines (foreign exchange crises and the fiscalist theory of prices) is both cogent and profound. But some of their links to monetary unions are left implicit, and I shall try to bring them out. Before I turn to them, I should like to offer some opinions about the main benefits and costs of monetary union, on which he writes early on in his paper.