“Badly”, is the easy answer. Badly, for the euro that is; but nicely, no doubt, for the economics of the member states.
We can make that prognosis based on the well-known instability of cartels that results from the intense incentive to cheat that they generate among their members.
This applies just as well to monetary cartels, especially for currency unions that have been built without a central government having been established beforehand. 29 In a cartel of goods and services, in fact, once an agree
29 Michael D. Bordo and Lars Jonung, “The Future of the EMU: What Does the History of Monetary Unions Tell Us?”, NBER Working Paper N° 7365, September 1999.
-55-
Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information:
Book title: Euro Exit: Why (and How) to Get Rid of the Monetary Union.
Contributors: Jean-Jacques Rosa - Author.
Publisher: Algora.
Place of publication: New York.
Publication year: 2012.
Page number: 55.
This material is protected by copyright and, with the exception of fair use, may not be further copied, distributed or transmitted in any form or by any means.
One moment ...
- Georgia
- Arial
- Times New Roman
- Verdana
- Courier/monospaced
Reset