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Controlled Dismantlement of the Eurozone: A Strategy to Save the European Union and the Single European Market
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Stefan Kawalec
Published/Copyright:
November 30, 2019
Abstract
The problems with a single currency in Europe are neither temporary nor curable. Any persistent defence of the euro will result in a long-lasting recession and high unemployment in countries using fiscal austerity to pursue ‘internal devaluation’. It may lead to a revival of populist and nationalist movements, political collapse and disorderly eurozone break-up. This article argues for a controlled segmentation of the eurozone via the exit of the most competitive countries and an agreement on a new European currency coordination system.
Keywords: Eurozone crisis; internal devaluation; deflation; currency devaluation; Euro break-out; future of Europe
Published Online: 2019-11-30
Published in Print: 2013-02-01
© 2019 by Walter de Gruyter Berlin/Boston
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Articles in the same Issue
- Editorial
- The Case of European Monetary Integration and its Former Hegemon
- Default of Systemically Important Financial Intermediaries: Short-term Stability versus Incentive Compatibility?
- Controlled Dismantlement of the Eurozone: A Strategy to Save the European Union and the Single European Market
- Writing Clearly: The ECB’s Monetary Policy Communication
- Is Fiscal Policy Procyclical in the Euro Area?
- Optimal Liquidity Provision Through a Demand Deposit Scheme: The Jacklin Critique Revisited
- Index: Volume 13, 2012
- Acknowledgements
Keywords for this article
Eurozone crisis;
internal devaluation;
deflation;
currency devaluation;
Euro break-out;
future of Europe
Articles in the same Issue
- Editorial
- The Case of European Monetary Integration and its Former Hegemon
- Default of Systemically Important Financial Intermediaries: Short-term Stability versus Incentive Compatibility?
- Controlled Dismantlement of the Eurozone: A Strategy to Save the European Union and the Single European Market
- Writing Clearly: The ECB’s Monetary Policy Communication
- Is Fiscal Policy Procyclical in the Euro Area?
- Optimal Liquidity Provision Through a Demand Deposit Scheme: The Jacklin Critique Revisited
- Index: Volume 13, 2012
- Acknowledgements
