The Economics of the Monetary Union and the Eurozone Crisis by Manuel Sanchis i Marco

By Manuel Sanchis i Marco

​A regulatory concept performed this paintings: the necessity to attach the commercial intent of the idea of foreign money components with the present european institutional body of the ecu financial unification procedure. The latter comprises the hot revamping of financial ideas of the steadiness and progress Pact, and demands improving ‘flexicurity’ in european labour markets. the inability of ecu political management is a dead-weight loss to construct a real fiscal and financial union, and hazards to blow-up the entire venture. extra, it undermines the interior macroeconomic common sense of a unmarried foreign money just like the euro, and offers a favourite non-democratic position to monetary markets. because it occurred some time past with the gold-standard, the euro condemns at the present time the peripheral nations to a deflationary strategy which would final for a decade. A extra pro-European process is required with each side of the process (core and outer edge) making the necessary adjustment efforts, even though within the contrary means, to avoid wasting the eurozone and Europe.

“The concept of optimum foreign money parts is still the basic framework to appreciate the layout disasters of the eurozone. so as to comprehend those dramatic financial advancements that grip the eurozone, Sanchis i Marco’s publication is the correct one on the correct time. He does an exceptional task in explaining this thought and in making it suitable for our realizing of the issues confronted via the eurozone. The final chapters of the publication flip in the direction of an research of the hindrance of the euro and the way to get out of this predicament. through suggesting a course out of the difficulty, Professor Sanchis i Marco leaves us with a few desire for the longer term for Spain and different eurozone countries.”

Prof. Paul De Grauwe, London college of Economics

Show description

Read Online or Download The Economics of the Monetary Union and the Eurozone Crisis PDF

Best money & monetary policy books

Monetary Standards and Exchange Rates

During this quantity a global workforce of extraordinary financial historians study the old adventure of trade price behaviour below diversified financial regimes. the focus is on steel criteria and stuck alternate premiums, akin to the premiere. With its blend of thematic overviews and case experiences of the major international locations and sessions, the publication tremendously complements our figuring out of previous financial platforms.

Globalizing Capital: A History of the International Monetary System (Second Edition)

First released greater than a decade in the past, Globalizing Capital is still an crucial a part of the commercial literature this day. Written through well known economist Barry Eichengreen, this vintage e-book emphasizes the significance of the overseas financial process for realizing the foreign economic system. short and lucid, Globalizing Capital is meant not just for economists, but in addition a normal viewers of historians, political scientists, execs in govt and enterprise, and somebody with a huge curiosity in diplomacy.

The Chinese Yuan: Internationalization and Financial Products in China

Few themes have attracted as a lot recognition around the globe in recent times because the RMB. those debates have won extra urgency in mild of the monetary concern and the subject of RMB revaluation is now being actively debated in nations worldwide from Tunisia to the us. This e-book explores the ever-changing function of the RMB and the comparable by-product items.

Additional resources for The Economics of the Monetary Union and the Eurozone Crisis

Example text

Non compliance with the recommendations triggers further steps in the procedures, including the possibility of sanctions for euro-area member states. 1 Legal Basis and Accounting Definitions The Excessive Deficit Procedure is detailed in article 104C of the Treaty of Maastricht, as well as in its associated legislation, that is, in the Protocol on the excessive deficit procedure, and in Council Regulation (CE) no 3605/93 on the application of the Protocol (European Council 1993). In this article, it is stated that fiscal deficit and debt figures must comply with the methodology of the European System of Integrated Economic Accounts (ESA).

Without this flexibility, the necessary adjustment will be through lower employment levels. The available empirical evidence suggests that while long-term real wage flexibility in most EU countries more or less matches US levels, the speed of adjustment has been significantly slower in continental Europe,2 thus, short-term costs in output, job losses and unemployment are increased. Moreover, these negative side-effects run the risk of persisting over time, since unemployment may breed unemployment and suffer from hysteresis, mainly by diminishing the effectiveness of the (long-term) unemployed as job seekers in the market.

Non compliance with the recommendations triggers further steps in the procedures, including the possibility of sanctions for euro-area member states. 1 Legal Basis and Accounting Definitions The Excessive Deficit Procedure is detailed in article 104C of the Treaty of Maastricht, as well as in its associated legislation, that is, in the Protocol on the excessive deficit procedure, and in Council Regulation (CE) no 3605/93 on the application of the Protocol (European Council 1993). In this article, it is stated that fiscal deficit and debt figures must comply with the methodology of the European System of Integrated Economic Accounts (ESA).

Download PDF sample

Rated 4.96 of 5 – based on 15 votes