ABSTRACT
In Chapter 2 we noted that the movement for European monetary union (EMU) has gained momentum since 1988. Today its chances to succeed look brighter than ever before. We pointed out the intimate link between the movement for monetary union in Europe and the quest for political union: economic considerations alone do not fully explain the push for EMU, nor the opposition to it. Nonetheless, economic arguments remain important to evaluate the prospect of EMU and to assure that the institutions of the future union be designed in a way to foster the best economic outcome.
