The Great Recession of 2012–2014: The Monetary Union Challenged by National Egoisms

Pierre-Alain Muet ()

A chapter in The Euro and the Crisis, 2017, pp 125-130 from Springer

Abstract: Abstract Eight years after the outbreak of the financial crisis, while the United States have for several years emerged from recession, Europe, after a long recession whose only precedent is the 30s deflation, has barely recovered the level of GDP per capita that existed before the 2008 crisis. The argument developed in this article is that this crisis is inherent to a monetary union which has failed to build the political institutions necessary for its functioning. Coordination through rules is not enough. Without an “economic government” able to set up a discretionary coordination of fiscal policy, the monetary union has been unable to implement a policy mix suitable for the whole euro area and let deflationary policies develop, pushing the whole of Europe into depression.

Keywords: Euro Area; Monetary Union; Sovereign Debt; Euro Zone; Sovereign Debt Crisis (search for similar items in EconPapers)
Date: 2017
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:spr:fimchp:978-3-319-45710-9_9

Ordering information: This item can be ordered from
http://www.springer.com/9783319457109

DOI: 10.1007/978-3-319-45710-9_9

Access Statistics for this chapter

More chapters in Financial and Monetary Policy Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().