Abstract
The last 7 years have been a tumultuous period for Europe and the unrest is far from over. The global crisis that began in 2007 led to a sharp financial shock in 2008–9, which ushered in a recession across the world. Europe—including Germany—was hit hard as credit contracted and international trade shrunk. The real crisis in Europe, however, commenced in 2009–10 as the recession induced a worsening of public finances that triggered off a gigantic crisis in the Eurozone.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
See Flassbeck and Lapavitsas (2013).
- 2.
Even so, the bulk of the academic literature still relies in one way or another on the OCA-theory, or on the so-called ‘policy trilemma’ of open economies, i.e., their inability to achieve at once stability of the exchange rate, freedom of capital flows and monetary autonomy. In a system of floating rates the trilemma is a dilemma; see, Flassbeck (2001).
- 3.
See Flassbeck (2001).
- 4.
The “doctrine” was clearly laid out in OECD (1994).
- 5.
- 6.
See, Lapavitsas et al. (2012), pt. I.
- 7.
See, for instance, Gabrisch and Staehr (2014).
- 8.
See, Gabrisch and Staehr (2014).
- 9.
See, Schäuble (2011).
References
Flassbeck H (1997) Und die Spielregeln für die Lohnpolitik in einer Währungsunion? Frankfurter Rundschau (31/10/1997), p 12
Flassbeck H (2001) The exchange rate: economic policy tool or market price? UNCTAD Discussion papers 157
Flassbeck H, Spiecker F (2005) Die deutsche Lohnpolitik sprengt die Europäische Währungsunion. WSI-Mitteilungen 58(12):707–713
Flassbeck H, Lapavitsas C (2013) The systemic crisis of the euro: true causes and effective therapies. Rosa Luxemburg Stiftung Studien. http://www.Rosalux.de/fileadmin/rls_uploads/pdfs/Studien/Studien_The_systemic_crisis_web.pdf
Gabrisch H, Staehr K (2014) The Euro plus pact. Cost competitiveness and external capital flows in the EU Countries. Working Paper series Nr. 1650, European Central Bank
Lapavitsas C, Kaltenbrunner A, Lambrinidis G, Lindo D, Meadway J, Michell J, Painceira JP, Powell J, Pires E, Stenfors A, Teles N, Vatikiotis L (2012) Crisis in the Eurozone. Verso, London
OECD (1994) The OECD jobs study. OECD, Paris
Schäuble W (2011) Why austerity is the only cure for the Eurozone. Financial Times (05/09/2011)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2016 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Flassbeck, H. (2016). Macroeconomic Theory and Macroeconomic Logic: The Case of the Euro Crisis. In: Karasavvoglou, A., Kyrkilis, D., Makris, G., Polychronidou, P. (eds) Economic Crisis, Development and Competitiveness in Southeastern Europe. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-40322-9_1
Download citation
DOI: https://doi.org/10.1007/978-3-319-40322-9_1
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-40321-2
Online ISBN: 978-3-319-40322-9
eBook Packages: Economics and FinanceEconomics and Finance (R0)