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Reverse the road: From European Monetary Union to Euroization

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  • Alban Mathieu
  • Pierre Funalot

Abstract

Euroization is considered as a solution for transition economies or as a step toward later integration into the Economic and Monetary Union (EMU). This article seeks to challenge this conventional trajectory by arguing that a country already participating in the EMU could opt for euroization. Instead of adopting a binary analysis of pros and cons, a moderate perspective is employed, taking into account the specific institutional setup of Eurozone member countries. The aim of this article is to underscore the potential advantages of euroization, positioning it as a strategy that, though limited, can provide greater fiscal policy space.

Suggested Citation

  • Alban Mathieu & Pierre Funalot, 2024. "Reverse the road: From European Monetary Union to Euroization," Global Policy, London School of Economics and Political Science, vol. 15(5), pages 1015-1024, November.
    • Handle: RePEc:bla:glopol:v:15:y:2024:i:5:p:1015-1024
    DOI: 10.1111/1758-5899.13420
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