The future of the euro

Vincent Duwicquet (), Jacques Mazier, Pascal Petit () and Jamel Saadaoui

MPRA Paper from University Library of Munich, Germany

Abstract: The euro crisis illustrates the deficiencies of adjustment mechanisms in a monetary union characterized by a large heterogeneity. Exchange rate adjustments being impossible, few alternative mechanisms are available. Nevertheless, fiscal policy could play an active role. The chapter is organized as follow. In the first part, we give a new evaluation of these exchange rate misalignments inside the eurozone, using a FEER approach, and we discuss the structural character of these misalignments. In the second part, we analyse the deadlock of the actual European institutional framework and propose two alternative exit strategies, a first step towards a fiscal federalism or, on the opposite, a new monetary regime based on a multi-euro system.

Keywords: Euro Crisis; Exchange Rate Misalignments; Fallback Strategies. (search for similar items in EconPapers)
JEL-codes: E1 E12 E42 F41 F42 (search for similar items in EconPapers)
Date: 2015-02
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/67690/1/MPRA_paper_67690.pdf original version (application/pdf)

Related works:
Working Paper: The Future of the Euro (2015)
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:pra:mprapa:67690

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().