Cover IMF Working Papers
Buy Book in Print
Assessing the Assessment: A Critical Look At the June 2003 Assessment of the United Kingdom'S Five Tests for Euro Entry
Author:
Mr. Carlo Cottarelli
Search for other papers by Mr. Carlo Cottarelli in
Current site
Google Scholar Close
and
Mr. Julio Escolano
Search for other papers by Mr. Julio Escolano in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2004: Issue 116
Language:
English
Publication Date:
01 Jul 2004
DOI:
https://doi.org/10.5089/9781451853964.001
ISBN:
9781451853964
ISSN:
1018-5941
Pages:
46
Keywords:
WP; U.K. economy; euro area; U.K. transmission mechanism; U.K. Treasury; U.K. government; Assessing the Assessment; Five Tests; Euro Entry; transmission mechanism; U.K. housing cycle; U.K. idiosyncrasy; Housing prices; Consumption; Housing; Monetary unions; Mortgages; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (355.2 KB) Download Epub
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.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund