European Monetary Union: an old Keynesian guide to issues
The work adopts an old Keynesian perspective to evaluate the EMU. Such a perspective raises concerns with the effectiveness of monetary policy, the feasibility of monetary policy, and the political economy of monetary policy. The EMU brings with it institutional lock-in, and therefore needs to be ev...
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2013-10-01
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| Series: | PSL Quarterly Review |
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| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10574 |
| _version_ | 1811172439204298752 |
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| author | T.I. PALLEY |
| author_facet | T.I. PALLEY |
| author_sort | T.I. PALLEY |
| collection | DOAJ |
| description | The work adopts an old Keynesian perspective to evaluate the EMU. Such a perspective raises concerns with the effectiveness of monetary policy, the feasibility of monetary policy, and the political economy of monetary policy. The EMU brings with it institutional lock-in, and therefore needs to be evaluated with a long term perspective. Whether or not to join the EMU depends on whether effective sovereign monetary policy is feasible now and in the future, whether the EMU constitutes an optimal currency area, and whether the proposed European Central Bank will have an appropriate institutional design. If formed, the EMU should create institutions which promote expansionary policies and empower the conduct of sovereign European monetary policy.
JEL Codes: E5, F3, F4, F02
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| first_indexed | 2024-04-10T17:31:09Z |
| format | Article |
| id | doaj.art-3770e37c03134b2780c6197c7abd9ea4 |
| institution | Directory Open Access Journal |
| issn | 2037-3635 2037-3643 |
| language | English |
| last_indexed | 2024-04-10T17:31:09Z |
| publishDate | 2013-10-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj.art-3770e37c03134b2780c6197c7abd9ea42023-02-03T16:46:17ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432013-10-015020110.13133/2037-3643/10574European Monetary Union: an old Keynesian guide to issuesT.I. PALLEYThe work adopts an old Keynesian perspective to evaluate the EMU. Such a perspective raises concerns with the effectiveness of monetary policy, the feasibility of monetary policy, and the political economy of monetary policy. The EMU brings with it institutional lock-in, and therefore needs to be evaluated with a long term perspective. Whether or not to join the EMU depends on whether effective sovereign monetary policy is feasible now and in the future, whether the EMU constitutes an optimal currency area, and whether the proposed European Central Bank will have an appropriate institutional design. If formed, the EMU should create institutions which promote expansionary policies and empower the conduct of sovereign European monetary policy. JEL Codes: E5, F3, F4, F02 https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10574European monetary unionEuropean central bankOptimal currency areaSovereign monetary policy |
| spellingShingle | T.I. PALLEY European Monetary Union: an old Keynesian guide to issues PSL Quarterly Review European monetary union European central bank Optimal currency area Sovereign monetary policy |
| title | European Monetary Union: an old Keynesian guide to issues |
| title_full | European Monetary Union: an old Keynesian guide to issues |
| title_fullStr | European Monetary Union: an old Keynesian guide to issues |
| title_full_unstemmed | European Monetary Union: an old Keynesian guide to issues |
| title_short | European Monetary Union: an old Keynesian guide to issues |
| title_sort | european monetary union an old keynesian guide to issues |
| topic | European monetary union European central bank Optimal currency area Sovereign monetary policy |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10574 |
| work_keys_str_mv | AT tipalley europeanmonetaryunionanoldkeynesianguidetoissues |