Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The Economists’ Voice

Ed. by Belke, Ansgar / Schnabl, Gunther

1 Issue per year


CiteScore 2017: 0.15

SCImago Journal Rank (SJR) 2017: 0.104
Source Normalized Impact per Paper (SNIP) 2017: 0.105

Online
ISSN
1553-3832
See all formats and pricing
More options …
Ahead of print

Issues

An Evolutionary Path Towards a European Monetary Fund

Daniel Gros
Published Online: 2018-11-24 | DOI: https://doi.org/10.1515/ev-2018-0012

Abstract

There is no need for Europe to replicate the International Monetary Fund (IMF). The European Stability Mechanism (ESM) can provide the backstop for sovereigns, even without a financial contribution from the IMF. In this sense, the ESM already constitutes to a large extent a ‘European Monetary Fund’. Other IMF activities, such as surveillance and policy coordination should remain with the European Commission, the Eurogroup and other existing bodies. The financial resources of the ESM will be required as a backstop only intermittently, in times of great financial market instability. The need for this will evolve as a function of the nature of financial markets and their cross-border integration. It is not possible to forecast with any precision when the next financial crisis might break out and what form it will take. Any evolution of the ESM should thus aim at enhancing flexibility in its instruments while clarifying its overall mandate (financial stability), rather than changing the details of the rescue mechanism or its institutional structure. The financial stability function of the ESM should be extended to the central institutions of the Banking Union, with an ultimate backstop for the Single Resolution Fund (SRF). Moreover, the ESM should be viewed as the natural instrument for unifying the euro area’s representation in the IMF.

Keywords: European Monetary Fund; European Stability Mechanism (ESM); financial stability; Euro Area representation in IMF

References

About the article

Published Online: 2018-11-24


Citation Information: The Economists’ Voice, 20180012, ISSN (Online) 1553-3832, DOI: https://doi.org/10.1515/ev-2018-0012.

Export Citation

©2018 Walter de Gruyter GmbH, Berlin/Boston.Get Permission

Comments (0)

Please log in or register to comment.
Log in