Political Economic and Monetary Union: EU and Domestic Constraints

At the Intergovernmental Conference concluded in Maastricht in 1992, all European Community (EC) countries seemed to have come around to the view that a credible and sound counter-inflationary monetary constitution should be adopted (although not necessarily a European monetary constitution, in the cases of the UK, Denmark and Sweden). As was pointed out at the time in the flourishing new political economy literature, joining a monetary union based on institutions capable of delivering price stability was probably the best way to implement this strategy.