Dear Friends and Colleagues,
I have posted a policy report titled <http://www.thomaspalley.com/> "Fixing
the Euro's Original Sins: The Monetary - Fiscal Architecture and Monetary
Policy Conduct". The abstract is below.
The euro's fundamental design problems remain unresolved, suggesting they
will keep resurfacing to undermine prosperity and the progressive European
project. The paper provides an easy read explaining the problems and
provides politically viable solutions to them.
Please share the paper with persons who are interested in this vital matter.
Sincerely,
Tom Palley
Thomas Palley
mail@xxxxxxxxxxxxxxxx <mailto:mail@xxxxxxxxxxxxxxxx>
Tel: 202-667-5518
www.thomaspalley.com <http://www.thomaspalley.com/>
Fixing the Euro's Original Sins: The Monetary - Fiscal Architecture and
Monetary Policy Conduct
Abstract
The euro zone (EZ) was created in January 1999. Its weak economic
performance is significantly due to the euro's neoliberal monetary
architecture and the design of monetary policy. Those features undermine
national political sovereignty and consign the EZ to severe economic
under-performance, which in turn fosters political demands for exit from the
euro. Escaping this dynamic requires restoring fiscal space to EZ countries,
and also changing the design of EZ monetary policy. The paper shows how this
can be done. It decomposes the challenge of reform into generic problems
related to the neoliberal construction of monetary policy, and specific
problems concerning the euro as a currency union. The currency union
problems are further decomposed into "money - fiscal policy" architecture
problems and specific monetary policy conduct problems. [READ MORE]
<http://www.thomaspalley.com/>
