(Staff)

Theory of monetary integration, the evolution of monetary integration in Europe towards the formation of an economic and monetary union (EMU) and the functioning of EMU are the major topics covered. Thus, incomplete monetary unions (EMS etc) and complete monetary unions (EMU) are both examined. Theory of optimum currency areas, that is, costs associated with forming a monetary union, as well as its benefits are thoroughly studied. Fiscal aspect of monetary integration is also investigated. The topics are discussed with reference to the evolution of the international monetary system and the impact of EMU on the international monetary system.