The Failure of the Euro

The euro should now be recognized as an experiment that failed. This failure, which has come after just over a dozen years since the euro was introduced, in 1999, was not an accident or the result of bureaucratic mismanagement but rather the inevitable consequence of imposing a single currency on a very heterogeneous group of countries. The adverse economic consequences of the euro include the sovereign debt crises in several European countries, the fragile condition of major European banks, high levels of unemployment across the eurozone, and the large trade deficits that now plague most eurozone countries.

The political goal of creating a harmonious Europe has also failed. France and Germany have dictated painful austerity measures in Greece and Italy as a condition of their financial help, and Paris and Berlin have clashed over the role of the European Central Bank (ECB) and over how the burden of financial assistance will be shared.
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Martin Feldstein – Foreign Affairs

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follow-up. 27.02.2012

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„Der Euro hat enorm geschadet“
Der US-Ökonom Martin Feldstein hat Europa immer vor der gemeinsamen Währung gewarnt. Was rät er jetzt?
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Mark Schieritz – DIE ZEIT

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follow-up. 22.05.2012

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Martin Feldstein on the Future of the Euro
Editor Gideon Rose interviews author Martin Feldstein about the failure of a currency once meant to unite the European economy and community. In the 90s, Dr. Feldstein pointed out the likely negative outcomes of creating a monetary union among such different nations and cultures. In this interview and recent article, he explains the consequences of the European debt crisis, noting the differences among Greece, Italy, Spain, and others.
Is this in fact an experiment that has failed, or can the Euro survive and achieve some of its original purpose?

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Archiv-Beiträge zu Prof. Feldstein