euro bills Kevin Harber/Flickr

Moving on From the Euro

It has been obvious for some years that the “actually existing EMU” has been a costly failure, not just economically but politically. And yet most economists, even those who were never keen on Europe’s monetary union in the first place, have been reluctant to make the argument that the time has come to abandon a failed experiment.

SAINT-PIERRE-D’ENTREMONT, FRANCE – European Monetary Union was never a good idea. I remember my surprise when, as a young assistant professor, I realized that I was opposed to the Maastricht Treaty. I believed then – and still do – that European integration is a very good thing. But the textbook economics I was teaching showed how damaging EMU could be in the absence of European fiscal and political union.