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The euro has been a failure. The single currency has failed to deliver economic stability or a greater sense of a European identity. Martin Wolf

 It has become a source of discord.

The story of Italy is revealing and, given its size, of crucial importance.

All of this was predicted. 

In his excellent EuroTragedy, Princeton University’s Ashoka Mody cites a critique of the 1970 Werner Committee report, the first blueprint for a monetary union, by Nicholas Kaldor, a British economist of Hungarian origin.

Kaldor argued there would need to be fiscal transfers. That would require a political union. 

But the conflicts created by the currency union would fester, making moves towards such a union more difficult. So it has proved.

Martin Wolf FT 19 June 2018

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