Show Less
Restricted access

Towards a Resilient Eurozone

Economic, Monetary and Fiscal Policies

John Ryan

This book examines the Eurozone crisis and the possibility of fiscal and political union in Europe, with contributions from some of the most respected experts on these topics. The book explains the complex, multidimensional crises in competitiveness, fiscal matters, banking and politics. During the crisis Germany has been criticized for misjudging the causes, focusing too much on fiscal deficits and insisting that the solution is fiscal consolidation and austerity. For many, especially those inspired by Keynesian economics, Germany has been seen as pushing the whole continent into a depression. By misjudging the causes of the crisis, insisting on widespread austerity, constraining the European central Bank (ECB) in its role of Lender of Last Resort for the sovereigns, rejecting the mutualization of Eurozone debt and providing financial help in small amounts and too late, Germany is perceived to be responsible for the possible break-up of the Eurozone. The aim of this book is to analyse whether this description, one that is shared by numerous policymakers, academics, pundits and opinion leaders, means that there is a lack of resilience in the Eurozone’s economic, monetary and fiscal policies.
Show Summary Details
Restricted access



This book discusses monetary and fiscal policies needed for European Monetary Union (EMU) to function properly. As in this matter the view from Germany is fundamental, this book offers a particular German perspective that should stimulate discussion and lead to more effective strategies for policymakers from all sides of this debate.

John Ryan and John Loughlin, in their chapter on ‘Historical Monetary Unions: Lessons for the Current Eurozone Crisis’, examine three historical monetary unions: the Latin Monetary Union (LMU), the Scandinavian Monetary Union (SMU), and the Austro-Hungarian Monetary Union (AHMU) in an attempt to derive possible lessons for the EMU. Special attention is paid, in particular, to the importance of economic and political integration in the success and failure of historical monetary unions, with the goal of shedding light on the fraught question of whether sustained successful monetary union is possible without high levels of economic convergence in the common currency area and indeed fiscal and banking union. The chapter further discusses the political and institutional aspects and whether a federal set of arrangements is necessary in order to sustain monetary union successfully.

‘Towards a resilient EMU? The German inspired response to the Euro crisis assessed’ by Lothar Funk examines the emergency measures and ‘rules-of-the-game’ changes which were driven by particular German ordoliberal economic based ideas, although these measures and changes were seen as too pragmatic by many German economic experts. A comparison of various assessments of progress towards a more stable Eurozone by...

You are not authenticated to view the full text of this chapter or article.

This site requires a subscription or purchase to access the full text of books or journals.

Do you have any questions? Contact us.

Or login to access all content.