AEI - Monetary Integration 1973

STUDY GROUP ON ECONOMY AND MONETARY UNION

European economic integration and monetary unification

Composition of the group:

Professor Dr. H.W.J Bosman
Professor B. De Jouvenel
Professor J. Denizet
Professor D.G.M Dosser
Professor Dr. H. Giersch
Professor G. Magnifico
Professor J. E. Meade
Professor R. A. Mundell
Professor Dr. W, Neubauer
Professor F. Onida
Professor T. Peeters

Regular commission participants in the group´s work
Mr. U. Mosca
Mr F. Boyer De La Giroday
Mr. P. Van Den Hempt
Mr. J. De Maeyer

Secretariat
Mr. J.C. Morel
Mr J. Schùler


footnote2:
This, however, does not necessarily imply that gold cannot serve any useful purpose in the construction of the European Monetary Union. Because a large body of opinion still regards gold as a factor of monetary discipline, the issue of the European currency might be linked to gold. The link should be fractional and ajdustable in order to avoid building into the mechanism of creation of the European currency a constraint of the gold-standard type. As the C.E.C. circulation explained, the link envisaged here would lead to the de facto centralization of the national gold stocks.

...

Because gold is underpriced a special official. European shadow price of gold should be set above the official price as a preliminary arrangement until a satisfactory international solution to the undervaluation of gold ie found.

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Source: http://aei.pitt.edu/32789/1/Monetary_Integration_1973.pdf