Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/209156 
Year of Publication: 
2018
Series/Report no.: 
Working Paper No. 913
Publisher: 
Levy Economics Institute of Bard College, Annandale-on-Hudson, NY
Abstract: 
There is no disputing Germany's dominant economic role within the eurozone (EZ) and the broader European Union. Economic leadership, however, entails responsibilities, especially in a world system of monetary production economies that compete with each other according to political and economic interests. In the first section of this paper, historical context is given to the United States' undisputed leadership of monetary production economies following the end of World War II to help frame the broader discussion developed in the second section on the requirements of the leading nation-state in the new system of states after the war. The second section goes on further to discuss how certain constraints regarding the external balance do not apply to the leader of the monetary production economies. The third section looks at Hyman P. Minsky's proposal for a shared burden between the hegemon and other core industrial economies in maintaining the stability of the international financial system. Section four looks at Germany's leadership role within the EZ and how it must emulate some of the United States' trade policies in order to make the EZ a viable economic bloc. The break up scenario is considered in the fifth section. The last section summarizes and concludes.
Subjects: 
Germany
Eurozone
Hyman P. Minsky
Economic Leadership
Solvency
Endogenous Balance of Payments Position
Realization Problems
JEL: 
B27
E42
F13
F45
F55
Document Type: 
Working Paper

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