The Quest for Nominal and Real Convergence through Integration in Europe and Latin America

Abstract

Over the last decade economic integration has advanced in both areas, and this has been seen as an opportunity for real convergence in Latin America and in the European periphery. But our approach emphasises that integration has to be supplemented by macroeconomic stability and structural reform. Focusing on these aspects, this work compares both experiences which, while very diverse in nature, depth and scope, may however offer through their differences and analogies interesting insights, especially for Latin America, as the degree of integration in Europe is much more advanced. The conclusions point to the need for a further effort in Latin America to achieve the fruits of reasonable policies, in order to compensate for the robust institutional underpinnings from which the European periphery has benefited. Thus, at the current juncture, as Latin America looks back with mixed feelings on the past decade, perseverance and determination in pursuing reforms are called for.

Past and Current European Monetary Union Crises: Lessons for the Envisaged West African Monetary Union

“…Greece later joined the EU on 1 January 2001 and on 1 January 2002 the euro was finally introduced (European Central Bank, 2011). National currencies circulated alongside the euro and completely phased out after 6 months, making the euro the sole legal tender in the participating countries (Kondonassis and Malliaris, 1994;Alberola et al, 2003;Salvatore, 2004;Mongelli, 2008).…”