EconPapers    
Economics at your fingertips  
 

The Brexit as a Forerunner: Monetary Policy, Economic Order and Divergence Forces in the European Union

Gunther Schnabl () and Müller Sebastian
Additional contact information
Müller Sebastian: Universität Leipzig, Institut für Wirtschaftspolitik, Grimmaische Straße 12, 04109 Leipzig, Germany

The Economists' Voice, 2019, vol. 16, issue 1, 18

Abstract: The paper analyzes the effects of the increasingly expansionary monetary policies on the economic order in Europe and the European integration process. It is argued that a liberal market order and a tight monetary policy stance shaped in postwar Germany and in United Kingdom have long served as cornerstones for growth, prosperity and social cohesion in Europe. A prolonged loose monetary policy stance of the European Central Bank has undermined these orders, thereby diminishing productivity gains and growth. Combined with negative distribution effects, those monetary policies constitute the breeding ground for divergence forces in the European Union as heralded by the Brexit.

Keywords: Brexit; divergence; economic order; European Integration; Friedrich August von Hayek; inequality; Ludwig Erhard; Margret Thatcher; monetary policy; political polarization (search for similar items in EconPapers)
JEL-codes: B25 E58 E65 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1515/ev-2019-0029 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: The Brexit as a Forerunner: Monetary Policy, Economic Order and Divergence Forces in the European Union (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:evoice:v:16:y:2019:i:1:p:18:n:13

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/ev

DOI: 10.1515/ev-2019-0029

Access Statistics for this article

The Economists' Voice is currently edited by Michael Cragg, Dwight Jaffee and Joseph Stiglitz

More articles in The Economists' Voice from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2023-01-18
Handle: RePEc:bpj:evoice:v:16:y:2019:i:1:p:18:n:13