 The ECB and the Decline of European DemocracyJames Forder Chapter 5 in The Price of the Euro, 2004, pp 71-85 from Palgrave Macmillan Abstract: Abstract The costs and benefits of shared currencies were argued over in one way or another for many years before the creation of the European Monetary Union. Perhaps the most notable aspect of the debate was that theorizing never brought about a consensus on much more than what the questions are. No one ever seriously doubted that there are some very small gains to be had from saving currency exchange costs and related matters. On the other hand, the obvious danger was that the necessity of having the same monetary policy throughout the area would result in bad economic policy and bad economic outcomes — unemployment chief amongst them. The principal issue in the debate, then, was whether the accumulation of small gains would outweigh the possible large losses. The European Commission did its best to make the case that the dangers were small, essentially by arguing that economic policy does not have much effect on economic outcomes anyway.1 And in the event most of the European Union adopted the euro without much further consideration. Keywords: Interest Rate; Monetary Policy; Central Bank; Fiscal Policy; Euro Area (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-52380-7_5 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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