The euro joseph stiglitz review
The Euro: How a Common Currency Threatens the Future of Europe by Joseph E. StiglitzIn 2010, the 2008 global financial crisis morphed into the “eurocrisis.” It has not abated. The 19 countries of Europe that share the euro currency—the eurozone—have been rocked by economic stagnation and debt crises. Some countries have been in depression for years while the governing powers of the eurozone have careened from emergency to emergency, most notably in Greece.
In The Euro, Nobel Prize–winning economist and best-selling author Joseph E. Stiglitz dismantles the prevailing consensus around what ails Europe, demolishing the champions of austerity while offering a series of plans that can rescue the continent—and the world—from further devastation.
Hailed by its architects as a lever that would bring Europe together and promote prosperity, the euro has done the opposite. As Stiglitz persuasively argues, the crises revealed the shortcomings of the euro. Europe’s stagnation and bleak outlook are a direct result of the fundamental challenges in having a diverse group of countries share a common currency—the euro was flawed at birth, with economic integration outpacing political integration. Stiglitz shows how the current structure promotes divergence rather than convergence. The question then is: Can the euro be saved?
After laying bare the European Central Bank’s misguided inflation-only mandate and explaining how eurozone policies, especially toward the crisis countries, have further exposed the zone’s flawed design, Stiglitz outlines three possible ways forward: fundamental reforms in the structure of the eurozone and the policies imposed on the member countries; a well-managed end to the single-currency euro experiment; or a bold, new system dubbed the “flexible euro.”
With its lessons for globalization in a world economy ever more deeply connected, The Euro is urgent and essential reading.
The Euro and Its Threat to the Future of Europe by Joseph Stiglitz – review
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It was about emotions, negative ones; and behaviour is something that economists struggle to capture. Joseph Stiglitz does better than most. For years the former chief economist at the World Bank and adviser to President Clinton has been inveighing against the rise in inequality and unaccountable elites. In his latest book, he returns to one of his pet hates, the single currency project of the Brussels establishment, and sets about disembowelling it. Its architects, or rather Argonauts, laboured under the misapprehension that economic integration would beget political integration, and strong economic growth shared by all. The flaws in the currency came to a head after the banking crash of
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The Euro: How a Common Currency Threatens the Future of Europe
By Joseph Stiglitz. Its subject is the euro, which has hitherto been the main font of fears for Europe and his analysis suggests will soon be once again. It is a meaty subject, suited to a big-name economist. The main argument of his new book is that, on its current course, the euro is certain to fail—and indeed, that it was fatally flawed from birth. It entails a fixed exchange rate and a single interest rate for its members, which means countries must forgo the option to devalue in times of economic weakness. Instead the burden falls on individual countries through austerity policies, such as tax rises and wage cuts.
Stiglitz pp. With a common currency and increasing integration, Europe was, finally, bidding adieu to cross-border conflict and economic crisis. Turmoil and strife were so very 20th century; the future was to be only digital apps and polyglot cafes. Well, they still have Chartres, and they still have Goethe. They also have millions of migrants, rising nationalism, recurrent recessions and plummeting birthrates. What went wrong? Joseph E.
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