European Monetary Union: Badly Prepared for Big Crises
Abstract Even before the COVID-19 crisis, the European Monetary Union (EMU) exhibited an unsatisfactory economic development with low growth and inflation rates below the target rate of the central bank. Macroeconomic coordination among monetary and fiscal policy is necessary to fend off such large...
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| Format: | Article |
| Language: | deu |
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Sciendo
2021-05-01
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| Series: | Wirtschaftsdienst |
| Online Access: | https://doi.org/10.1007/s10273-021-2921-6 |
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| author | Michael Heine Hansjörg Herr |
| author_facet | Michael Heine Hansjörg Herr |
| author_sort | Michael Heine |
| collection | DOAJ |
| description | Abstract Even before the COVID-19 crisis, the European Monetary Union (EMU) exhibited an unsatisfactory economic development with low growth and inflation rates below the target rate of the central bank. Macroeconomic coordination among monetary and fiscal policy is necessary to fend off such large crises. Insufficient wage increases that lead to deflation need to be avoided. Last, but not least, a mechanism is needed to stabilise the financial system and quickly deal with non-performing loans. Except in the field of monetary policy, the EMU lacks institutions that support quick and sufficient economic policies. There is the danger that policy mistakes will lead to long-term stagnation in the EMU or possibly even a great recession. |
| format | Article |
| id | doaj-art-0d6b1110d133442e91884dd1f0b160f7 |
| institution | Kabale University |
| issn | 0043-6275 1613-978X |
| language | deu |
| publishDate | 2021-05-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Wirtschaftsdienst |
| spelling | doaj-art-0d6b1110d133442e91884dd1f0b160f72025-02-02T09:29:20ZdeuSciendoWirtschaftsdienst0043-62751613-978X2021-05-01101536937510.1007/s10273-021-2921-6European Monetary Union: Badly Prepared for Big CrisesMichael Heine0Hansjörg Herr1FB Wirtschaftswissenschaften, Hochschule für Wirtschaft und Recht BerlinFB Wirtschaftswissenschaften, Hochschule für Wirtschaft und Recht BerlinAbstract Even before the COVID-19 crisis, the European Monetary Union (EMU) exhibited an unsatisfactory economic development with low growth and inflation rates below the target rate of the central bank. Macroeconomic coordination among monetary and fiscal policy is necessary to fend off such large crises. Insufficient wage increases that lead to deflation need to be avoided. Last, but not least, a mechanism is needed to stabilise the financial system and quickly deal with non-performing loans. Except in the field of monetary policy, the EMU lacks institutions that support quick and sufficient economic policies. There is the danger that policy mistakes will lead to long-term stagnation in the EMU or possibly even a great recession.https://doi.org/10.1007/s10273-021-2921-6 |
| spellingShingle | Michael Heine Hansjörg Herr European Monetary Union: Badly Prepared for Big Crises Wirtschaftsdienst |
| title | European Monetary Union: Badly Prepared for Big Crises |
| title_full | European Monetary Union: Badly Prepared for Big Crises |
| title_fullStr | European Monetary Union: Badly Prepared for Big Crises |
| title_full_unstemmed | European Monetary Union: Badly Prepared for Big Crises |
| title_short | European Monetary Union: Badly Prepared for Big Crises |
| title_sort | european monetary union badly prepared for big crises |
| url | https://doi.org/10.1007/s10273-021-2921-6 |
| work_keys_str_mv | AT michaelheine europeanmonetaryunionbadlypreparedforbigcrises AT hansjorgherr europeanmonetaryunionbadlypreparedforbigcrises |