The birth of European macroeconomics | Ashoka Mody and Dae Woong Kang at

English: Various Euro bills.

English: Various Euro bills. (Photo credit: Wikipedia)

This is an outstanding, must-read article published by leading think-tank Bruegel. Check it out!

via The birth of European macroeconomics | Ashoka Mody and Dae Woong Kang at

The article examines the history of the Euro. Once again, it highlights that politics is subordinating economics.

After this week’s deal with Greece, I think that the Euro will once again come under intense scrutiny. Fiscal convergence seems to be for the birds. Big countries like France can flout the rules but small countries, like Cyprus, are held strictly accountable.

Perhaps, France will again try to gain momentum on less austerity and more investment? After all, it’s investment that creates jobs. Most leading economists are bitterly critical of excessive austerity as policy tool.




One response

  1. As Dr Alf knows politics subordinated economics a long time ago.

    Monnet, when he conceptualized a United States of Europe in 1944, wanted a single Government and a single currency and that has been the project ever since.

    The idea of a Europe which genuinely created jobs and prosperity for all Europeans has never been the objective of the Eurocrats, as evidenced by the fact that the EU has failed to deliver on any of the promises which were made for it from the 1975 Referendum to the present day. We were promised millions of new jobs yet not a single nett new job has been created other than in Germany.
    We were told that there would be no more wars in Europe–Chancellor Kohl’s recognition of Bosnia ensured that we had one including massacres, ethnic cleansing and a shattered Balkans.
    He secretly channeled £1 billion gbp to the Croatians on top of arms which were used to ethnically cleanse the area of Serbs who had lived in Krajina for more than 100 years.

    We were told about the single currency and a “new financial architecture ” by Gordon Brown who under instructions from the Bilderberg steering committee shipped half our gold reserves to Germany.
    On the gold that remained he lost billions selling it at the wrong time yet spoke of “prudence with a purpose”.

    As an exercise it has been an unmitigated disaster because Europe does not make the “traffic lights turn green” in Washington and Beijing, nor does it “punch above it’s weight.

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