In this book, a historical analysis of the precedents of the euro is examined within the context of the current issues affecting the Eurozone and the long-term effects of the institutional changes implemented since 2010.

The book begins by placing the Eurozone challenges in the historical context of previous monetary unions, drawing on the experience of the gold standard. It then specifically focuses on the problems arising from the running of permanent trade imbalances within the Eurozone. The authors explore the advantages and disadvantages of being a member of the Eurozone and attempt to measure the optimality of a currency area by the calculation of an index on internal macroeconomic asymmetries. They address the proposals recently made in favour of a fiscal union in the Euro zone; including the economic and political feasibility of fiscal transfers in the Eurozone. The final two papers discuss whether the monetary union is in fact more than just that, and whether it will lead inevitably to some form of political union if it is to survive.

With chapters by leading experts from both Europe and the UK, this book will appeal to students in Economics, Finance, Politics, EU integration and European studies; as well as academics and professional economists doing research in EU integration, the Euro zone, monetary history and monetary and banking unions in Europe, the UK and elsewhere.

chapter 1|14 pages


ByJuan E. Castañeda, Alessandro Roselli, Geoffrey E. Wood

part 1|47 pages

Lessons from previous currency and monetary unions

chapter 2|14 pages

The flexibility of the classical gold standard (1870s–1914)

Any lessons for the eurozone?
ByGuillaume Bazot, Eric Monnet, Matthias Morys

chapter 3|31 pages

A measurement of asymmetry in the running of the classical gold standard

ByJuan E. Castañeda, Alessandro Roselli, Simeng He

part 2|40 pages

Financing imbalances in a single monetary area

chapter 5|15 pages

The credit mechanics of monetary unions

A review of the Eurosystem
ByFrank Decker

part 3|35 pages

When may monetary unions fail?

chapter 6|15 pages

Pros and cons of being a euro country

A behavioral political economy perspective
ByDonato Masciandaro, Davide Romelli

chapter 7|18 pages

An optimality index of the single currency

Internal asymmetries within the eurozone since 1999
ByJuan E. Castañeda, Pedro Schwartz

part 4|65 pages

Preserving unions

chapter 8|18 pages

Public support for the euro and trust in the ECB

The first two decades of the common currency
ByFelix Roth, Lars Jonung

chapter 9|16 pages

Debt restructuring for the eurozone

ByDimitrios P. Tsomocos, Xuan Wang

chapter 10|29 pages

The rationale for a safe asset and fiscal capacity for the eurozone

ByLorenzo Codogno, Paul van den Noord

part 5|38 pages

The eurozone

chapter 11|19 pages

Can the euro succeed without European political union?

The organizational challenges facing a multi-government monetary union in the “managed currency” era
ByTim Congdon

chapter 12|17 pages

Proposals for reforming the eurozone

A critique
ByRoland Vaubel