Borders Matter: Why the Euro is a Mistake and Why it will Fail

Arjo Klamer

Chapter 2 in The Price of the Euro, 2004, pp 29-43 from Palgrave Macmillan

Abstract: Abstract Once the euro is a fact, the discussion subsides. The pragmatic interest of making it work comes to prevail. A critic is then made to feel like an unconstructive spoiler of the game. The train has to go on. There is no alternative (an expression that goes by the name of TINA). There is no way back. But what if the foundations of the edifice that has to keep the euro afloat are weak and shaky? What if a shock wave of some kind or another might be able to bring this entire edifice down? It would be something to reckon with. Scientists, at least, have the responsibility to point out the foundational weaknesses, and have to repeat their warnings whether those in power are willing to listen or not. These very doubts should encourage politicians to work on the foundations as well as on routes of escape. And those who consider getting into the building of the euro may recoil when they acknowledge the weakness of the foundations of the EMU.

Keywords: Exchange Rate; Central Bank; Monetary Union; Common Currency; European Parliament (search for similar items in EconPapers)
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-52380-7_2

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DOI: 10.1057/9780230523807_2

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