Interventionsspiralen in der Europäischen Währungsunion

Starbatty Joachim

ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, 2018, vol. 69, issue 1, 401-422

Abstract: The decisive difference between the “Währungsreform” of 1948 (monetary reform) and the introduction of the Euro in 1999 consists of the fact that in 1948 prices again signalled scarcity whereas in 1999 the signalling functions of central prices, exchange- and interest rates, were abolished. Ludwig von Mises has shown that state interventions into market mechanisms cause spiralling interventions. The reform of 1948 removed intervention spirals, after the introduction of the Euro they became unavoidable. Interest rates were too low for the Southern periphery and caused distortions – leading to different levels of competitiveness, which could not be compensated anymore by exchange rate adjustments. To avoid a break-up of the Euro the European treaties were broken and monetary policy was pushed towards a change of paradigm. Due to the fragility of the currency union the intervention spiral is turning further. It is foreseeable that national financial responsibility will turn into a system of totally joint liability.

Date: 2018
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DOI: 10.1515/ordo-2019-0020

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