Economic and monetary union in Europe (EMU) will produce profound changes in exchange and financial markets, and these are likely to affect in a fundamental way the activities of a broad range of market participants and private and official institutions. The conference, cosponsored by the Fondation Camille Gutt and the International Monetary Fund, was on the subject of EMU and the international monetary system, and it generated many insights into the effects of the introduction of the euro. Given the widespread interest in this topic, it was felt useful to disseminate this work to a wider audience, and the present book, reporting on the papers and proceedings of the conference, is the result. This introduction gives a short summary of the papers, three speeches, and two roundtable discussions, organized along five main themes: the characteristics of the euro and its potential role as an international currency; EMU and international policy coordination; EMU and the relationship between the Fund and its EMU members; lessons of European monetary integration for the international monetary system; and the transition to EMU. The papers, which appear in the chapters that follow in the order in which they were presented at the conference, are accompanied by discussants' comments, and in some cases by a summary of the general discussion. Written versions of the presentations at the roundtables and of the speeches are also included in the book.