ABSTRACT
Following the assessment of the GCC’s economic suitability for MU against the various OCA criteria, we now turn our attention to MU policy prerequisites and necessary preparations. We consider many of these as essential or at the very least highly desirable in order for a viable MU. Whereas the OCA criteria fall largely into the field of longer term, structural requirements, the factors which we discuss here relate to economic policy variables – the objects of decisions which will have to be made by governments and monetary authorities, ones which in theory can be undertaken within a short timeframe. These policy prerequisites have become apparent primarily as a consequence of the EMU process; therefore, we term these the European criteria.
