From the early 1960s, when Mundell wrote his seminal article, through the late 1960s
and the discussions that led up to issuance of theWerner Report, Europe’s early if abortiveattempt to move to monetary union, and the early 1990s, when European monetary
integration came onto the front burner with the Delors Report and the Maastricht Treaty,
there were nearly three decades in which to incorporate these insights into economic and
policy analysis. The points made by Mundell, Kenen and their followers were, by then,
familiar to anyone who had taken a first course in international economics. However, the
impact on policy-making was limited by the fact that the literature focused almost entirely
on analytical constructs. There were few efforts to apply it to actual or prospective
monetary unions like the one about to be constructed in Europe.
From the early 1960s, when Mundell wrote his seminal article, through the late 1960sand the discussions that led up to issuance of theWerner Report, Europe’s early if abortiveattempt to move to monetary union, and the early 1990s, when European monetaryintegration came onto the front burner with the Delors Report and the Maastricht Treaty,there were nearly three decades in which to incorporate these insights into economic andpolicy analysis. The points made by Mundell, Kenen and their followers were, by then,familiar to anyone who had taken a first course in international economics. However, theimpact on policy-making was limited by the fact that the literature focused almost entirelyon analytical constructs. There were few efforts to apply it to actual or prospectivemonetary unions like the one about to be constructed in Europe.
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