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We need a European Monetary Fund, but how should it work?
Report

We need a European Monetary Fund, but how should it work?

Bruegel, 2017

automatisch generiertes Audio
automatisch generiertes Audio

Editorial Rating

8

Qualities

  • Analytical
  • Innovative
  • For Experts

Recommendation

Over time, banking and sovereign debt crises have laid bare the original design flaws in the European Monetary Union (EMU), which sorely needed a blueprint to guide the region through financial tumult. According to this cogent essay by economists André Sapir and Dirk Schoenmaker, a transformation of the European Stability Mechanism – by expanding its responsibilities and reforming its governance – into a European Monetary Fund would help close gaps in the EMU edifice. getAbstract recommends this succinct but innovative text to policy analysts and experts.

Take-Aways

  • The Maastricht Treaty, the foundation for the European Monetary Union (EMU), lacked measures to address economic problems that could affect the region as a whole.
  • Under “EMU 1.0,” each member nation would fend for itself in the event it suffered a financial collapse.
  • Subsequent bank and sovereign debt crises led to reforms and “EMU 2.0.”

About the Authors

André Sapir and Dirk Schoenmaker are economists with Bruegel, a European think tank.