The Euro: Why it Failed

PrefaceEurozone Crises‘Optimal’ Currency Area: What Does It Mean?A Euro Is Not Just a Means of PaymentA Brief DefinitionAn Overall Macroeconomic DebateEvaluation of an ‘Optimal Currency Area’Euro-monetarismEuro-realismNoteWhy Was the EMU Established? Different PerspectivesA ‘Common’ European Currency Became a Political Project Supported by the Euro-monetaristsConvergence Criteria without ConvergenceThe More Members of the Monetary Union, the Weaker It BecomesStability Pact without StabilityConclusion: The Inherent Contradictions of the EMUNoteBalance-of-Payments Imbalances have Become the ‘Achilles Heel’ of the EMUBalance of Payment Imbalances are Destabilising the EurozoneWhy Balance-of-Payments Imbalances Always MatterWhat Is a ‘Structural Current Account’?Theoretical Interlude: Do Not Mistake Foreign Debt for Public Debt!Macroeconomic DisagreementNotesPublic Sector Deficit and Debt: Cause or Effect?Some Introductory RemarksPublic Finances Are a Part of ‘the Economy as a Whole’Are Politicians Guards of the Common Good?Fallacy of Composition (I): ‘You Can’t Live Beyond your Means’Fallacy of Composition (II): ‘The Sun Is Moving Around the Earth’Different Concepts Related to the Public Sector BudgetPublic Sector and the ‘Economy as a Whole’Spain: A Telling Case of Macroeconomic CausalityDoes the Juncker Plan of 2015 Signal a (Minor) Change?Public Debt DynamicsConclusion: Public Finance - Cause or Effect?The Structural Budget: A Policy Goal or a Macroeconomic Instrument?How Do Governments Avoid Public Debt Ratios to go on Growing?NotesMacroeconomic Imbalances: Unemployment and InequalityCauses of UnemploymentProfitability: The Margin Between Market Price and Unit (Labour) CostEffective Domestic and Foreign DemandA ‘race to the bottom’ in the Eurozone?Social Consequences of the Euro and the ‘Race to the Bottom’Conclusion: Macroeconomic Imbalances Have IncreasedNotesDistressed European Central Bank and Financial InstabilityIntroduction: Two Views on Money and FinanceBalance of Payments, Capital AccountMonetary and Financial Instability Within the EMUThe Dollar/Euro Exchange Rate - InstabilityIntra-EMU Payments: The Target SystemFinancial InstabilityNotesAny Future of the Euro?The PastThe PresentThe Future?NoteBibliography
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