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The Future of the Eurozone Does Not Lie with Enlargement

C. J. Polychroniou

Economics One-Pager Archive from Levy Economics Institute

Abstract: The European Union's survival depends on its ability to reform, either through enlargement—greater economic and fiscal coordination in the direction of some sort of federal state—or by getting smaller, with the eurozone becoming a true optimum currency area. Most analysts support the former proposition. But the rush to strengthen and expand the Union is precisely what led to the current crisis in the eurozone.

Date: 2011-11
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