The Euro and the Nation-State That Never Disappeared: Would Europe Benefit from the Return of National Currencies?

• This chapter discusses the current problems and future prospects of the euro area. The author argues that the problem for the euro area is not the return of the nation-state, but that the nation-states never disappeared. A common currency requires common economic policies, which is largely lacking in the euro area. As a result, large economic and social imbalances have emerged. The chapter examines proposals from the European Commission to increase the level of co-operation to reduce the imbalances. He finds the proposals backward-looking and insufficient. Towards the end of the chapter, the author explores possibility of some countries leaving the euro area. He finds that a friendly divorce is costly in the short term, but likely needed to restore economic balance in the long run. According to the author, a smaller euro area may mean more European co-operation down the line.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Nyckelord

euro

penningpolitik

euroområdet

Europa

ekonomisk politk

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kap (ämneskategori)

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