Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/176957
Authors: 
Müller, Sebastian
Schnabl, Gunther
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper 6938
Abstract: 
We analyze the effects of the increasingly expansionary monetary policies on the economic order and on the European integration process. We argue that the market orders shaped in postwar Germany and in Margret Thatcher’s United Kingdom have long served as cornerstones for growth, prosperity and social cohesion in Europe. It is shown that the monetary policies of the European Central Bank and the Bank of England have undermined these orders, thereby eroding productivity gains and growth. Combined with negative distribution effects, ultra-loose monetary policies constitute the breeding ground for divergence forces in the European Union as heralded by the Brexit.
Subjects: 
European integration
economic order
Walter Eucken
Friedrich August von Hayek
Margret Thatcher
inequality
monetary policy
political polarization
divergence
Brexit
JEL: 
B25
E58
E65
Document Type: 
Working Paper

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