Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/167747
Authors: 
Amato, Massimo
Fantacci, Luca
Papadimitriou, Dimitri B.
Zezza, Gennaro
Year of Publication: 
2016
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 4 [Year:] 2016 [Issue:] 3 [Pages:] 1-14
Abstract: 
After reviewing the main determinants of the current Eurozone crisis, this paper discusses the feasibility of introducing fiscal currencies as a way to restore fiscal space in peripheral countries, such as Greece, which have so far adopted austerity measures in order to abide by their commitments with Eurozone institutions and the IMF. We show that the introduction of fiscal currencies would speed up the recovery, without violating the rules of Eurozone Treaties. At the same time, these processes could help the transition of the euro from its current status of single currency to a status of 'common clearing currency' along the lines proposed by Keynes at Bretton Woods as a system of international settlements. Eurozone countries could therefore move from 'Plan B' aimed at addressing member state domestic problems, to a 'Plan A' of a better European monetary system.
Subjects: 
euro
fiscal currencies
austerity
current account imbalances
Clearing Union
JEL: 
E02
E12
E42
F45
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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