The economic consequences of the Euro : the safest escape plan / Stefan Kawalec, Ernest Pytlarczyk and Kamil Kamiński.

Format:

Book

Author/Creator:

Kawalec, Stefan, author.

Pytlarczyk, Ernest, author.

Kamiński, Kamil, author.

Series:

Economics in the real world ; 9.

Economics in the real world ; 9

Language:

English

Subjects (All):

Euro.

Eurozone--Economic conditions.

Eurozone.

Economic conditions.

European Union countries--Economic conditions.

European Union countries.

Economic history.

Physical Description:

xi, 211 pages : illustrations ; 25 cm.

Place of Publication:

Milton Park, Abingdon, Oxon ; New York, NY : Routledge Taylor & Francis Group, 2020.

Summary:

"This book presents a new narrative on the Eurozone crisis. It argues that the common currency has the potential to kill the European Union, and the conventional wisdom that the Eurozone can be fixed by a common budget and further political integration is incorrect. The authors address key questions such as why the European Union and the single market have been successful, why the common currency poses a threat to European integration, and whether it is possible to either fix the Eurozone or dissolve it while keeping the EU and the single market. Contrary to the view that it would be best if the Southern European countries left the Eurozone first, the book makes the case that the optimal solution would be to start the process with the most competitive countries exiting first. The authors argue that a return to national currencies would be beneficial not only to the crisis-ridden southern countries, but also to France and Germany, which were the main promoters of the single currency. An organised unwinding of the Euro area would be beneficial both for the European economy and for Europe's main trading partners. The authors contend that to defend the Euro at all costs weakens the European economy and threatens the cohesion of the European Union. If pro-European and pro-market EU leaders do not dismantle the Eurozone, it will most likely be done by their anti-European and anti-market successors. If that happens, the European Union and the common market will be destroyed. This book will be a useful and engaging contribution to the existing literature in the fields of macro, monetary and international finance and economics"-- Provided by publisher.

Contents:

Part I From the success of the European Union and the single market to the euro crisis p. 15

1 The European Union and the single market: Europe's great success p. 17

2 The euro as an intended step towards strengthening the EU and the single market p. 21

3 The eurozone at a crossroads p. 25

Part II The significance of national currencies and exchange rate adjustments p. 29

4 Loss of international competitiveness and inability to restore it as a source of the problems of the eurozone's depressed economies p. 31

5 International competitiveness should not be confused with productivity p. 36

6 Currency weakening compared to deflationary policy: Two alternative scenarios for restoring international competitiveness p. 38

7 The meaning of exchange rate adjustments (bike trip example) p. 42

8 The tragic experience of the defence of the gold standard through deflationary policy during the Great Depression p. 45

9 Devaluations that allowed countries to escape from crises in the post-war period p. 57

10 The cases often presented as the evidence of effectiveness of the internal devaluation p. 63

11 Controversies surrounding devaluation p. 79

Part III Can Europe compensate for the lack of national currencies? p. 83

12 The search for solutions that will repair and strengthen the eurozone p. 85

13 Can fiscal union deliver the tools to improve threatened countries' competitiveness? p. 90

14 What could a more flexible labour market deliver? p. 99

15 Can a fiscal union protect eurozone members from future problems with competitiveness? p. 102

16 The US, nation states and underdeveloped regions, and the ability of a single currency to function in Europe p. 106

17 The optimum community level for a single currency p. 111

Part IV What are the consequences of defending the Euro at all costs? p. 113

18 The threat to European integration p. 115

19 Conflicts with trading partners p. 130

Part V How to return to national currencies, while preserving the European Union and single market? p. 143

20 The euro trap p. 145

21 The way out of the euro trap: Germany should leave first p. 147

22 The main elements of the strategy for a coordinated euro break-up p. 151

23 Impact of the proposed strategy on risks associated with segmentation of the eurozone p. 157

24 The special role of the ECB during the transition period p. 163

25 The ability to cope with banking and debt crises p. 169

26 A new currency coordination system in Europe p. 171

27 Europe avoids conflicts with trading partners; Germany avoids a hard landing p. 175

28 Who can initiate the dissolution of the eurozone? p. 180

29 A new Bretton Woods p. 185.

Notes:

Includes bibliographical references and indexes.

Other Format:

Online version: Kawalec, Stefan, The economic consequences of the Euro.

ISBN:

9780367149352

0367149354

9780367149369

0367149362

OCLC:

1112798747