The Case of European Monetary Integration and its Former Hegemon

Mojmír Hampl

doi:10.1111/geer.12001

Article

The Case of European Monetary Integration and its Former Hegemon

Mojmír Hampl

Published/Copyright: November 30, 2019

Published by

Become an author with De Gruyter Brill

Submit Manuscript Author Information Explore this Subject

From the journal German Economic Review Volume 14 Issue 1

Abstract

There is no historical precedent for the institutional set-up of the eurozone. However, it is an arrangement that could not and cannot escape the universal laws and principles of economics. This article tries to look generally at the consequences of this integration project from the perspective of the former monetary hegemon, Germany, whose hegemony largely ended as a result of the monetary integration method chosen. Those consequences are, of course, more apparent in bad times than they were in good times. We then specifically examine the problem of convergence and divergence within a currency area and discuss the issue of competitive devaluation. In the conclusion, we try to formulate the fundamental dilemma faced by the former monetary hegemon. Its solution will affect those inside and outside the integration project.

Keywords: Monetary hegemony; monetary integration; convergence; divergence

Published Online: 2019-11-30

Published in Print: 2013-02-01

You are currently not able to access this content.

Articles in the same Issue

https://doi.org/10.1111/geer.12001

Keywords for this article

Monetary hegemony; monetary integration; convergence; divergence