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By "mechanics," I mean the mechanics of how a country changes from its original currency to the euro.  I assumed the EMU was a clearing union, not completely unlike what Keynes discussed.

Be nice to America. Or we'll bring democracy to your country.
by Drew J Jones (pedobear@pennstatefootball.com) on Thu Feb 1st, 2007 at 10:28:12 AM EST
[ Parent ]
No, the central bank merges into the ECB, the existing currency is exchanged for Euros at a set rate, and the country gets to print its own Euros in consultation with the ECB. I in fact mentioned Keynes' discussion upthread as an alternative to the way the EMU is configured.

"It's the statue, man, The Statue."
by Carrie (migeru at eurotrib dot com) on Thu Feb 1st, 2007 at 10:30:57 AM EST
[ Parent ]
Ah, gotcha.  Thanks.

Be nice to America. Or we'll bring democracy to your country.
by Drew J Jones (pedobear@pennstatefootball.com) on Thu Feb 1st, 2007 at 10:39:21 AM EST
[ Parent ]
But you could read the cluster of wikipedia articles around Economic and Monetary Union (including European System of Central Banks) and compare it to what you know about the Federal Reserve, in a diary.

"It's the statue, man, The Statue."
by Carrie (migeru at eurotrib dot com) on Thu Feb 1st, 2007 at 10:47:22 AM EST
[ Parent ]

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