The Economics of the Monetary Union and the Eurozone Crisis

  • Manuel Sanchis i Marco

Part of the SpringerBriefs in Economics book series (BRIEFSECONOMICS)

About this book

Introduction

​A regulatory idea conducted this work: the need to connect the economic rationale of the theory of currency areas with the current EU institutional frame of the European monetary unification process. The latter includes the recent revamping of fiscal rules of the Stability and Growth Pact, and calls for enhancing ‘flexicurity’ in EU labour markets. The lack of EU political leadership is a dead-weight loss to build a genuine economic and monetary union, and risks to blow-up the whole project. Further, it undermines the internal macroeconomic logic of a single currency like the euro, and gives a prominent non-democratic role to financial markets. As it happened in the past with the gold-standard, the euro condemns today the peripheral countries to a deflationary process which might last for a decade. A more pro-European approach is needed with both sides of the system (core and periphery) making the required adjustment efforts, though in the opposite way, to save the eurozone and Europe.

Keywords

Assymetric Shocks Currency Areas Euro Crisis Labour Market Flexibility Monetary Integration

Authors and affiliations

  • Manuel Sanchis i Marco
    • 1
  1. 1.Faculty of Economics Dpto. de Economia Aplicada IIUniversity of ValenciaValenciaSpain

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-319-00020-6
  • Copyright Information The Author(s) 2014
  • Publisher Name Springer, Cham
  • eBook Packages Business and Economics
  • Print ISBN 978-3-319-00019-0
  • Online ISBN 978-3-319-00020-6
  • Series Print ISSN 2191-5504
  • Series Online ISSN 2191-5512
  • About this book