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The Economic and Monetary Union: Past and Present Failures and some Future Possibilities

Malcolm Sawyer

Abstract

The Economic and Monetary Union was constructed on poor foundations which sought to impose inappropriate macroeconomic policies. This construction did not pay heed to the differences between countries with regard to their economic position and interests nor to the institutional and historical differences. The EMU was faltering before the financial crisis which highlighted and added to the problems of EMU. The neo- and ordo-liberal constraints on policy and policy reform are indicated. The outline of a policy agenda for prosperity in EMU is given.

Published on 2nd February, 2016, in World Social and Economic Review No 6, February 2016 – Europe in Crisis