"When the Monetary Union was founded in 1992, it was a common understanding among economists that a monetary union of states of very different economic strength could function only if either economic policy was communalized as well or the strong states were willing to pay for the debts of the weaker states. Politicians ignored this warning. The financial crisis showed that the economic experts were right. The Monetary Union deprives the states of a number of fiscal instruments such as revaluation or devaluation of the currency. This contributed to the crisis."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Original Language: English
Available Languages (1)
Sources
Revision History
No revisions have been submitted for this quote.
Categories
Euro
29 quotes on TrueQuotesView all quotes by Euro →
Related Quotes
"ECB [European Central Bank] President Mario Draghi’s famous promise to do ‘whatever it takes’ to preserve the eurozon…"
"The clear and present danger is, instead, that Europe will turn Japanese: that it will slip inexorably into deflation…"
"By trying to move prematurely to monetary union, we would run very serious risks. The dangers of forcing the pace hav…"
"The idea that the euro has "failed" is dangerously naive. The euro is doing exactly what its progenitor – and the wea…"
"Moving to a full monetary union in Europe is like putting the cart before the horse. A major shock would result in un…"
"In a monetary union with irreversibly fixed exchange rates the weak would become ever weaker and the strong ever stro…"
"EMU wasn't designed to make everyone happy. It was designed to keep Germany happy - to provide the kind of stern anti…"
"Our Union is more than an association of states. It is a new legal order, which is not based on the balance of power …"
"With the euro, that form of pressure has gone."
"If there was ever a bad idea, EMU it is."