Assessing the Assessment: A Critical Look at the June 2003 Assessment of the United Kingdom's Five Tests for Euro Entry

 
Author/Editor: Cottarelli, Carlo ; Escolano, Julio
 
Publication Date: July 01, 2004
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper provides a framework for evaluating the decision to enter a currency area, including the best timing for entry, and uses it to evaluate the assessment of the five tests for euro entry published by the U.K. Treasury in June 2003. The breadth and depth of its assessment is impressive by any standard. Nonetheless, this paper points at some areas that deserve to be explored further in future assessments. Covering these areas would not necessarily have changed the assessment's conclusion, namely that the case for entry is not yet "clear and unambiguous,." but it would have strengthened any conclusion reached. In addition, the paper highlights that in several areas relevant to the entry decision, the margin for uncertainty will remain significant, regardless of any reasonable attempt to reduce it.
 
Series: Working Paper No. 04/116
Subject(s): Monetary policy | United Kingdom | Euro area

Author's Keyword(s): Assessing the Assessment | Five Tests | Euro Entry
 
English
Publication Date: July 01, 2004
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1162004 Pages: 45
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
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