The Economics of Monetary Unions

This book offers a detailed exploration of the euro's historical precedents, addressing contemporary Eurozone challenges and potential future developments.

In The Economics of Monetary Unions, a thorough historical analysis of the euro's precedents is presented, contextualized within the current challenges facing the Eurozone. The authors delve into the long-term impacts of institutional changes that have taken place since 2010, providing readers with a comprehensive understanding of the evolution of this monetary union.

The narrative begins by situating the challenges of the Eurozone against the backdrop of earlier monetary unions, drawing parallels with the gold standard experience. It highlights the complexities arising from persistent trade imbalances within the Eurozone, offering insights into the pros and cons of Eurozone membership. The authors also introduce a unique index to measure the optimality of a currency area, taking into account internal macroeconomic asymmetries.

The book further engages with recent proposals advocating for a fiscal union within the Eurozone, discussing the economic and political feasibility of fiscal transfers. In its concluding chapters, it raises critical questions about the future of the monetary union, pondering whether it could evolve into a more integrated political union for its survival. With contributions from prominent experts across Europe and the UK, The Economics of Monetary Unions serves as an essential resource for students and professionals in various fields related to economics and European studies.