Modelling the transition to EMU
The EMU study by Dr Peter Westaway Modelling the transition to EMU is intended to inform discussion and evaluation of the possible transition costs were the UK to join EMU. The overall aim of the study is to provide a conceptual framework and toolkit to aid policymakers in their thinking about the transition issue, considering how they might ideally go about implementing this type of regime change so as to minimise the transition costs. The study is based on two complementary modelling exercises, one stylised, another empirically based, which both adopt a simplified version of the real world. These models are employed to examine how the sterling-euro conversion rate on entry might ideally be chosen and, more generally, consider how macroeconomic policy might be set in any transition period up to and beyond entry itself.
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Modelling the transition to EMU
PDF file of Executive Summary (99kb)
PDF file of Chapters 1, 2, 3 (451kb)
PDF file of Chapters 4, 5; references, annexes A, B (327kb)