Summary and Analysis of the Euro by Worth Books

Author:Worth Books
Language: eng
Format: epub
Publisher: Worth Books
Published: 2016-12-14T21:54:51+00:00

Part IV: A Way Forward?

9. Creating a Eurozone That Works

To fix the eurozone’s economic problems, Stiglitz argues for either “more Europe” or “less Europe.” To achieve “more Europe,” the following changes are necessary:

A banking union complete with common deposit insurance to prevent bank runs in weaker countries.

The “mutualization of debt,” such as through jointly issued Eurobonds, to help prevent divergence between the fortunes of weaker and stronger eurozone members.

A “common framework for stability” that includes a fund for common action, improved budget rules, automatic stimulus in the case of a downturn, better regulation of the economy, and other steps to ensure stability in the eurozone.

A “true convergence policy” that discourages surpluses and simultaneously increases wages in creditor countries like Germany.

Changing the mandate of the ECB to focus on full employment and economic growth, not only on controlling inflation.

Adopting further structural reforms, including an expedited bankruptcy process, corporate governance reforms, the promotion of investments in the environment, and financial reforms to ensure stability and long-term prosperity.

A “commitment to shared prosperity,” including limiting tax competition between member states and making redistribution a supranational, European-level responsibility.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.