Skip to main content
SpringerLink
Log in

Crisis of the euro zone and prospects of the euro

  • Macroeconomic Problems
  • Published:
Studies on Russian Economic Development Aims and scope

Abstract

This paper analyzes problems of the eurozone, which are aggravated by the crisis. It proposes architectural transformations of the European monetary system targeted at combating the crisis and promoting economic growth and employment in today’s structurally inhomogeneous Europe.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. G. J. Neuger and S. Kennedy, “Crisis Spawns Drive to Fix the Euro with More Rules, Ties (Update 1),” Bloomberg, Feb. 17 (2009), http://www.bloomberg.com.

  2. E. Ross-Thomas, “Spain Downgraded by S&P as Slump Swells Budget Gap,” Bloomberg, Jan. 19 (2009), http://www.bloomberg.com.

  3. P. Dobson, “European Yield Spreads Widen on Concern Debt Crisis Deepening,” Business Week, June 30 (2010), http://www.businessweek.com.

  4. A. Worrachate, “Italian Bond Futures Offer Proxy to Hedge Greek, Irish Debt,” Bloomberg, Sept. 11 (2009), http://www.bloomberg.com.

  5. J. Ostry et al., Capital Inflows: The Role of Controls. International Monetary Fund Staff Position Note (IMF, Washington DC, 2010).

    Google Scholar 

  6. F. Cachia, Les effets de l’appréciation de l’Euro sur l’économie française. Note de Synthèse de l’INSEE (INSEE, Paris, 2008).

    Google Scholar 

  7. “Depressionary Effects of the Euro are Explained by: J. Bibow. Global Imbalances, Bretton Woods II and Euroland’s Role-in All This,” in Euroland and the World Economy: Global Player or Global Drag? Ed. by J. Bibow and A. Terzi (Palgrave Macmillan, New York, 2007).

  8. S. Keendy and T. R. Keene, “Feldstein Says Greece Will Default and Portugal May Be Next,” Bloomberg via Business Week, June 30 (2010), http://www.business-week.com.

  9. A. Moses and D. S. Harrington, “Bank Swaps, Libor Show Doubt on Euro Bailout,” Bloomberg, May 11 (2010), http://www.bloomberg.com.

  10. J. Regan and R. Harui, “Euro Erases Gains as Bailout Optimism Ebbs; Stocks, Copper Drop,” Bloomberg, May 11 (2010), http://www.bloomberg.com; L. Mnyanda and P. Dodson, “Euro Rally Proves to Be Short-Lived on Rate Bets (Update 2),” Bloomberg, http://www.bloomberg.com.

  11. S. Scherer, “Greece Will Default, Euro May Disappear, Attali Tells Repubblica,” Business Week, June 29 (2010), http://www.businessweek.com.

  12. P.-A. Delhommais, “Une étude se demande si la France et l’Italie vont être contraintes d’abandonner l’Euro,” Le Monde, July 9 (2005).

  13. M. Touati, “Lettre Des Etudes Economiques,” Natexis-Banques Populaires, Mar. 9 (2006).

  14. S. Federbusch, “La surévaluation de la monnaie unique coûte cher à la croissance,” Libération-Rebonds, Apr. 26 (2006).

  15. D. Nora, N. Tatu, S. Fay, and N. Funès, “Faut-il brûler l’Euro?” Le Nouvel Observateur, http://hebdo.nouvelobs.com.

  16. B. Blackstone, “After Debt Crisis, New Tension Between ECB, Germany,” Wall Street Journal, May 26 (2010), http://online.wsj.com.

  17. R. A. Mundell, “A Theory of Optimum Currency Area,” Am. Econ. Rev. 51(3), 657–665 (1961).

    Google Scholar 

  18. R. A. Mundell, International Economics (Macmillan, London, 1968), Ch. 16–17.

    Google Scholar 

  19. J. Frenkel and A. Razin, “The Mundell-Fleming Model a Quarter of Century Later,” IMF Staff Paper, 34(4), 567–620 (1987).

    Article  Google Scholar 

  20. L. A. Ricci, “A Model of an Optimum Currency Area,” in A Working Paper for the International Monetary Fund, June (1997), http://www.imf.org.

  21. R. A. Mundell, “A Plan for a European Currency,” in The Economics of Common Currencies, Ed. by H. Johnson and A. Swoboda (George Allen & Unwin Ltd., London, 1973), pp. 143–173.

    Google Scholar 

  22. R. A. Mundell, “Uncommon Arguments for Common Currencies,” in The Economics of Common Currencies, Ed. by H. Johnson and A. Swoboda (George Allen & Unwin Ltd., London, 1973), pp. 114–132.

    Google Scholar 

  23. D. Cohen, “Imaginer la Monnaie Unique,” in L’Ecu et la vieille dame, Ed. by M. Aglietta (Economica, Paris, 1986), pp. 145–155.

    Google Scholar 

  24. A. Swoboda, Robert Mundell and the Theoretical Foundation for the European Monetary Union (IMF, Washington DC, 1999).

    Google Scholar 

  25. F. E. Kydland and E. C. Prescott, “Rules Rather than Discretion: The Inconsistency of Optimal Plans,” J. Polit. Econ. 85(2), 473–492 (1977).

    Article  Google Scholar 

  26. N. G. Mankiw, “A Letter to Ben Bernancke. American Economic Association,” in Alan Greenspan’s Legacy: An Early Look. Annual Meeting Papers (2006).

  27. N. G. Mankiw, “US Monetary Policy during the 1990s,” in American Economic Policy in the 1990s, Ed. by A. Frankel and P. Orszag (MIT Press, Cambridge, 2002).

    Google Scholar 

  28. M. Aglietta and A. Orléan, La Violence de la monnaie (PUF, Paris, 1982).

    Google Scholar 

  29. M. Aglietta and A. Orléan, La Monnaie entre violence et confiance (Odile Jacob, Paris, 2002).

    Google Scholar 

  30. A. Orléan, “Monnaie et spéculation mimétique,” in Violence et vérité autour de René Girard, Ed. by P. Dumouchel (Grasset, Paris, 1985), pp. 147–158.

    Google Scholar 

  31. J. Sapir, Les trous noirs de la science economique (Albin Michel, Paris, 2000).

    Google Scholar 

  32. A. Orléan, “Essentialisme monétaire et relativisme méthodologique,” Multitudes, no. 9, 190–195 (2002).

  33. J. Sapir, Quelle Economie pour le XXIè (Odile Jacob, Paris, 2005).

    Google Scholar 

  34. M. Aglietta, “Espoirs et inquiétudes de l’Euro,” in L’argent-Croyance, mesure, spéculation, Ed. by M. Drach (éditions la Découverte, Paris, 2004), pp. 235–248.

    Google Scholar 

  35. M. Godelier, Métamorphoses de la Parentè (Fayard, Paris, 2004), pp. 468–470.

    Google Scholar 

  36. G. A. Akerlof, W. T. Dickens, and G. L. Perry, “The Macroeconomics of Low Inflation,” Brookings Papers on Economic Activity, no. 1, 1–59 (1996).

  37. G. A. Akerlof and J. L. Yellen, “Can Small Deviations from Rationality Make Significant Difference to Economic Equilibria?” Am. Econ. Rev. 75(4), 708–720 (1985).

    Google Scholar 

  38. G. A. Akerlof and J. L. Yellen, “A Near-Rational Model on the Business Cycle with Wage and Price Inertia,” Quart. J. Econ., 100(5), 823–838 (1985).

    Google Scholar 

  39. G. A. Akerlof, “Behavioral Macroeconomics and Macroeconomic Behavior,” Am. Econ. Rev. 92(3), 411–433 (2002).

    Article  Google Scholar 

  40. B. C. Greenwald and J. E. Stiglitz, “Toward a Theory of Rigidities,” Am. Econ. Rev. 79(2) 364–369 (1989).

    Google Scholar 

  41. J. E. Stiglitz, “Toward a General Theory of Wage and Price Rigidities and Economic Fluctuations,” Am. Econ. Rev. 79(2), 591–602 (1989).

    Google Scholar 

  42. T. M. Andersen, “Can Inflation Be Too Low ?” Kyklos 54(4), 591–602 (2001).

    Article  Google Scholar 

  43. N. G. Mankiw and R. Reis, Sticky Information: A Model of Monetary Nonneutrality and Structural Slumpsé (Harvard University, 2001).

  44. O. Coibion, “Inflation Inertia in Sticky Information Models,” Contributions to Macroeconomics 6(1) (2006).

  45. C. Conrad and M. Karanasos, “Dual Long Memory in Inflation Dynamics across Countries of the Euro Area and the Link between Inflation Uncertainty and Macroeconomic Performance,” Stud. Nonlin. Dyn. Economet. 9(4) (2005), http://www.bepress.com.

  46. M. Dotsey and P. Sarte, “Inflation Uncertainty and Growth in a Cash-In-Advance Economy,” J. Monet. Econ. 45(3), 631–655 (2000).

    Article  Google Scholar 

  47. J. Sapir, “What Should the Inflation Rate Be? (On the Importance of a Long-Standing Discussion for Defining Today’s Development Strategy for Russia),” Problemy prognozirovaniya, no. 3 (2006) [Stud. Russ. Econ. Dev. 17 (3) (2006)].

  48. G. A. Akerlof, W. I. Dickens, and G. I. Perry, “Options for Stabilization Policy,” Brookings Institution Policy Brief, no. 69, Feb. 2001.

  49. J. M. Keynes, The General Theory and After (Macmillan, London, 1973), Vol. 14, Part 2: Defence and Development, pp. 201–213.

    Google Scholar 

  50. G. Harcourt, “The Economics of Keynes and Its Theoretical Importance: Or What Would Marx and Keynes Have Made of the Happenings of the Past 30 Years and More,” Post-Aut. Econ. Rev., no. 27, 2004, http://www.btinternet.com.

  51. P. Davidson, Post Keynesian Macroeconomic Theory (Edward Edgar, Cheltenham, 1994).

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Center d’Etudes des Modes de l’Industrialisation at the Ecole des Hautes Etudes en Sciences Sociales (EHESS), Paris, France

    J. Sapir

Authors
  1. J. Sapir
    View author publications

    You can also search for this author in PubMed Google Scholar

Additional information

Original Russian Text © J. Sapir, 2011.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Sapir, J. Crisis of the euro zone and prospects of the euro. Stud. Russ. Econ. Dev. 22, 225–236 (2011). https://doi.org/10.1134/S1075700711030142

Download citation

  • Received:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1134/S1075700711030142

Keywords

Search

Navigation