The euro and its threat to the future of Europe / Joseph E. Stiglitz.
Publication year: 2016
Publisher: UK : Allen Lane,
ISBN: 9780241258156 (hbk.) :
The euro was supposed to bring Europe closer together and promote prosperity; in fact, it has done just the opposite. The 2008 crisis revealed the shortcomings of the euro, and Europe's stagnation and bleak outlook are a direct result of the fundamental flaws inherent in the EU project - economic integration outpacing political integration with a structure that promotes divergence rather than convergence. The question then is: Can the euro be saved? Laying bare the European Central Bank's misguided inflation-only mandate, and explaining why austerity has condemned Europe to unending stagnation, Joseph Stiglitz outlines three possible ways forward: fundamental reforms in the structure of the Eurozone and the policies imposed on the member countries suffering the most; a well-managed end to the European Union; or a bold, new system dubbed 'the flexible euro.'
xxix, 454 pages ; 24 cm
On Brexit, Stiglitz concludes, “The reality is that UK is not likely to be much worse off – and potentially even better off – so long as the divorce is not too unpleasant, and so long as Europe doesn’t violate its obligations under the WTO rules (including the critical ‘most-favored-nation’ provision, which requires that one treats every nation, outside a common market, no worse than any other, so that the UK could not be treated any worse than the US). … We should note that the United States and Canada have both prospered – indeed, they have been doing far better than the eurozone – without free migration between them, without being a single market, and without full economic integration.” He shows what Britain should do to thrive outside the EU: “A country that borrows to make productive investment – in education, technology, or infrastructure – enhances its future potential: for most countries, the returns on these public investments far exceed the cost of capital.”
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