Going Forward from B to A? Proposals for the Eurozone Crisis
After reviewing the main determinants of the current Eurozone crisis, this paper discusses the feasibility of introducing fiscal currencies as a way to restore fiscal space in peripheral countries, such as Greece, which have so far adopted austerity measures in order to abide by their commitments wi...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2016-08-01
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| Series: | Economies |
| Subjects: | |
| Online Access: | http://www.mdpi.com/2227-7099/4/3/18 |
| _version_ | 1828348793615024128 |
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| author | Massimo Amato Luca Fantacci Dimitri B. Papadimitriou Gennaro Zezza |
| author_facet | Massimo Amato Luca Fantacci Dimitri B. Papadimitriou Gennaro Zezza |
| author_sort | Massimo Amato |
| collection | DOAJ |
| description | After reviewing the main determinants of the current Eurozone crisis, this paper discusses the feasibility of introducing fiscal currencies as a way to restore fiscal space in peripheral countries, such as Greece, which have so far adopted austerity measures in order to abide by their commitments with Eurozone institutions and the IMF. We show that the introduction of fiscal currencies would speed up the recovery, without violating the rules of Eurozone Treaties. At the same time, these processes could help the transition of the euro from its current status of single currency to a status of “common clearing currency” along the lines proposed by Keynes at Bretton Woods as a system of international settlements. Eurozone countries could therefore move from “Plan B” aimed at addressing member state domestic problems, to a “Plan A” of a better European monetary system. |
| first_indexed | 2024-04-14T01:00:11Z |
| format | Article |
| id | doaj.art-174a2bfe0a2c4341835a109956065147 |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-04-14T01:00:11Z |
| publishDate | 2016-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-174a2bfe0a2c4341835a1099560651472022-12-22T02:21:26ZengMDPI AGEconomies2227-70992016-08-01431810.3390/economies4030018economies4030018Going Forward from B to A? Proposals for the Eurozone CrisisMassimo Amato0Luca Fantacci1Dimitri B. Papadimitriou2Gennaro Zezza3Department of Policy Analysis and Public Management, Università Bocconi, Milano 20136, ItalyDepartment of Policy Analysis and Public Management, Università Bocconi, Milano 20136, ItalyLevy Economics Institute, Bard College, Annandale-on-Hudson 12504, NY, USADepartment of Economics and Law, Università di Cassino e del Lazio Meridionale, Cassino 03043, ItalyAfter reviewing the main determinants of the current Eurozone crisis, this paper discusses the feasibility of introducing fiscal currencies as a way to restore fiscal space in peripheral countries, such as Greece, which have so far adopted austerity measures in order to abide by their commitments with Eurozone institutions and the IMF. We show that the introduction of fiscal currencies would speed up the recovery, without violating the rules of Eurozone Treaties. At the same time, these processes could help the transition of the euro from its current status of single currency to a status of “common clearing currency” along the lines proposed by Keynes at Bretton Woods as a system of international settlements. Eurozone countries could therefore move from “Plan B” aimed at addressing member state domestic problems, to a “Plan A” of a better European monetary system.http://www.mdpi.com/2227-7099/4/3/18eurofiscal currenciesausteritycurrent account imbalances, Clearing Union |
| spellingShingle | Massimo Amato Luca Fantacci Dimitri B. Papadimitriou Gennaro Zezza Going Forward from B to A? Proposals for the Eurozone Crisis Economies euro fiscal currencies austerity current account imbalances, Clearing Union |
| title | Going Forward from B to A? Proposals for the Eurozone Crisis |
| title_full | Going Forward from B to A? Proposals for the Eurozone Crisis |
| title_fullStr | Going Forward from B to A? Proposals for the Eurozone Crisis |
| title_full_unstemmed | Going Forward from B to A? Proposals for the Eurozone Crisis |
| title_short | Going Forward from B to A? Proposals for the Eurozone Crisis |
| title_sort | going forward from b to a proposals for the eurozone crisis |
| topic | euro fiscal currencies austerity current account imbalances, Clearing Union |
| url | http://www.mdpi.com/2227-7099/4/3/18 |
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