The Future of the Euro

Philip Arestis and Malcolm Sawyer ()

Chapter 8 in Economic and Monetary Union Macroeconomic Policies, 2013, pp 168-187 from Palgrave Macmillan

Abstract: Abstract We discuss the future of the euro in this section, especially in the light of its recent experience. It would seem on the surface that the future of a monetary union encompassing 17 politically independent countries each with their own currencies prior to the union would be much influenced by Optimal Currency Area (OCA) considerations. The formation of the single currency and the euro area provides one of the few occasions on which a change in the scope of a currency area has been actively considered. The other recent cases that come to mind would be the reunification of Germany, and the splintering of Czechoslovakia, the Soviet Union and Yugoslavia. In each of those cases, the political considerations for the currency regime would dominate any OCA-style considerations (we return to the question of the relationship between monetary union and political union in chapter 9). As argued in chapter 2, the OCA considerations had virtually no impact on the decision to introduce a single European currency nor on the conditions governing which countries were to be members. This background is very relevant to the contents of this chapter as suggested in chapter 2.

Keywords: Current Account; Fiscal Policy; Euro Area; Real Exchange Rate; European Central Bank (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:pal:palchp:978-1-137-31789-6_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137317896

DOI: 10.1057/9781137317896_8

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().