El Euro Como Problema
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Transcript of El Euro Como Problema
7/21/2019 El Euro Como Problema
http://slidepdf.com/reader/full/el-euro-como-problema 1/6
Fernando Martin
The Euro as the
problem: the role
of the commoncurrency in the
EU crisis
• Introduction
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• The birth of the Euro: an Incomplete work
• ...And the crisis came: the test of the euro
• What can be done? A guide for Europe
• ibliography
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When Lehman Brothers went into bankruptcy in 2007 and
the US fell into a sudden crisis, in the Euroone some sense
of secret !oy arose" #n the one hand, the continental model
of economy which arose from the $aastricht treaty based
on %&scal responsibility' was bein( immune to this crisisand pro)in( its superiority towards the *n(lo+Saon world,
which was fallin( into (rowin( de&cit and depression" -n
addition, the European elites were sure that their banks and
&nancial systems were %.oo bi( to fall' /which paradoically
was the strate(y that was followed in Lehman brothers until
its sudden bankruptcy"
1owe)er, tides soon chan(ed and the crisis uickly
etended to the Euroone, causin( the bi((est crisis sincethe creation of the union" 3urthermore, while the US and the
rest of the de)eloped world reco)ered from the crisis shortly
after, the Euroone has fell further and further into the
depression, creatin( a bi( and perhaps !usti&ed amount of
doubts towards the European pro!ect"
-n the followin( work - will analye the ma!or role that the
Euro has played in the economic de)elopment of the
Euroone since it implementation on 2004 and theimperfections and errors that were present in the currency
since its )ery creation and how it helped to create the
problems amon( the member countries which later on
a((ra)ated the crisis"
Later on, - would analye the e5ect that the euro has had in
the economic crisis and how it has make more di6cult a
real and stable economic (rowth of the Euroone in (eneraland of the %peripheral countries' /or -8S in particular"
.o &nish with, - will propose a series of solutions or possible
scenarios that the Euroone countries could follow to
impro)e their economic performance"
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9e(ardin( the sources - ha)e used - ha)e found a uite
interestin( phenomena" 9e(ardin( countries which
currently are in the Euroone, there seems to be a uite
etended a(reement amon( the establishment that the
European currency has been mostly fa)orable, so in orderto &nd some critical positions towards the pro!ect - ha)e
used some %heterodo sources'" 1owe)er, in other
countries /mostly in the *n(lo Saon world there has been
always doubts towards the Euro, so the literature is
abundant and a lot of it comes from some of the most
important and respected economic commentators, as -
would show in the work"
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.he birth of the Euro: an incomplete work
Why was the euro created; .his is a uestion that we must
answer before enterin( the system itself, as some of its
failures of desi(n and functionin( partially came from the
ob!ecti)es that were in the minds of the creators of the
currency"
.he historical contet of the creation of the Europe is of the
utmost importance" *nd it was a period of !oy, at least fromthe point of )iew of the Western Europeans" *fter the <old
War Europe was becomin( united a(ain, the eastern
European countries were willin( to become more
democratic and to open their economy in order to be
accepted into the EU and the shadows of totalitarianism
were distant" .he end of history was proclaimed, and under
the !a" Americana liberal capitalism was rapidly spreadin(
throu(h the whole (lobe, so the uestion for the Europeanelites was to &nd a way for the little European countries to
stay as a rele)ant force in a world in where %super+
countries' such as 9ussia and <hina were emer(in(" .he
answer that pre)ailed in most of Western Europe was to
deepen the inte(ration process within the European Union"
* common currency was seen as an optimal step for some
of the followin( reasons such as the
+Less so)erei(nty" /4 currency policy,2= &scal policies
+Euro created to a)oid de)aluations
+Lack of democratic control o)er the central bank
+durin( the crisis producti)ity couldn>t increase in the
peripheral countries due to impossibility of de)aluation, so
it had to increase throu(h internal de)aluation /austerity"
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+8a)e false sense of stability to countries which allowed
them to buy more debt"
+.ry to become a %reser)e currency' in opposition to the
dollar"