REPRINT with index of journal ECONOMIC POLICY, no.26, April 1998. Incl.: Immediate challenges for the European Central Bank (R.Dornbusch, C. Favero & F. Giavazzi): The Stability Pact (B. Eichengreen & C. Wyplosz); Does EMU need a fiscal federation? (A. Fatas); Regional non-adjustment and fiscal policy (M. Obstfeld & G. Peri); Blessing or curse? foreign and underground demand for euro notes (K. Rogoff); The emergance of the euro as an international currency (R. Portes & H. Rey); Stability without a pact? lessons from the European gold standard, 1880-1914 (M. Flandreau, J. Le Cacheux & F. Zumer). Patrick Honohan contibutes to the discussion on this paper.

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