|NOBEL LAUREATE ROBERT MUNDELL ABOUT UK ENTRY
IN THE EMU «Do not imitate the british example»
June 5 the Tony Blair's Cabinet will discuss in London the UK entry in the
EMU or a new "not yet" like in 1997. The canadian Robert Mundell, Nobel
laureate of 99 and the "godfather" in 70's of the EMU, talks with Gurusonline.tv
about this crucial week in a short interview from Stockholm the week before the
Cabinet decision. Mundell, professor at Columbia, in New York, with other personalities
including Paul Volcker,the former head of US central Bank before Greenspan, and
Stanley Fischer, a former IMF managing director, announced at May 8th that "it
is clear that not only is the economic evidence overwhelmingly in favour of euro
entry, so is the opinion of the economics profession". Interview
by Jorge Nascimento Rodrigues, May 2003
page of Mundell: www.columbia.edu/~ram15/
Do you expect that UK
will entry the eurozone, despite political divergences with other european powers
on the transatlantic issue and global strategy of Bush Administration?
will see its entry as the best way of promoting its leadership in Europe, in keeping
Europe in NATO and ensuring that the EU does not become anti-American. It will
enter. The only question is when.
The five economic tests
were a temporizing distraction that increased the power of the Treasury and Gordon
Brown in the Blair Cabinet
The 5 economic tests where a good methodology
from the UK Treasury? Do you think its something other european countries must
do before entring the eurozone?
The five economic tests were a temporizing
distraction that increased the power of the Treasury and Gordon Brown in the Blair
Cabinet and seemed to present an objective economic framework for taking the decision
out of politics. The other countries do not need to imitate the British example.
USD devaluation is a good or a bad argument for the UK entry in the eurozone?
Large swings in the dollar-euro rate present a problem for Britain and all the
countries in the euro zone. The strong euro will help Britain negotiate a lower
rate for the pound in the euro. But a strong euro is a symptom of an excessively
tight monetary policy in the ECB and is not an appropriate policy in time of recession.
The ECB should not let the United States manipulate the dollar-euro rate against
The entry of Britain will make the
economy of the euro area comparable in size to the US economy, and increase the
long-run strength of the euro as an international reserve currency
will be the main economic effects for Europe of UK entry in the eurozone?
entry of Britain will be a factor in keeping the dollar-euro rate more stable
than it otherwise will be. It will also make the economy of the euro area comparable
in size to the US economy, and increase the long-run strength of the euro as an
international reserve currency.
Do you think it will be a good signal
for other countries like Sweden?
Britain's entry will surely tend to
sway opinion in Sweden and Denmark towards entry. But there remain residual fears
in these socialistic monarchies that the absorpiton of their national currencies
in the euro will lose yet another symbol of their separate identity.