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The Expected Failure of the European Economic and Monetary Union: A False Money against the Real Economy


  • Alain Parguez

    (University of Franche Comte
    University of Ottawa)


To convince international financial investors of the high real value of the Euro, the EMU has established rules that must be enforced in both the short and the long run. These rules are explained and the economics behind them criticized in the context of a monetary production economy in which financial markets play a central role. It is argued that the Euro cannot be an anchor for a new world financial order.

Suggested Citation

  • Alain Parguez, 1999. "The Expected Failure of the European Economic and Monetary Union: A False Money against the Real Economy," Eastern Economic Journal, Eastern Economic Association, vol. 25(1), pages 63-76, Winter.
  • Handle: RePEc:eej:eeconj:v:25:y:1999:i:1:p:63-76

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    1. Caro Emiliano ti scrivo...
      by Alberto Bagnai in Goofynomics on 2012-07-22 22:33:00


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    Cited by:

    1. Orsola Costantini, 2020. "The Eurozone as a Trap and a Hostage: Obstacles and Prospects of the Debate on European Fiscal Rules," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(5), pages 284-291, September.
    2. Sheila Dow, 2016. "Ontology and Theory for a Redesign of European Monetary Union," World Economic Review, World Economics Association, vol. 2016(6), pages 1-1, February.
    3. Canale, Rosaria Rita & Napolitano, Oreste, 2009. "The recessive attitude of EMU policies: reflections on the italian experience, 1998–2008," MPRA Paper 20207, University Library of Munich, Germany.
    4. Engelbert Stockhammer & Collin Constantine & Severin Reissl, 2020. "Explaining the Euro crisis: current account imbalances, credit booms and economic policy in different economic paradigms," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 43(2), pages 231-266, April.
    5. Eric Tymoigne & L. Randall Wray, 2013. "Modern Money Theory 101: A Reply to Critics," Economics Working Paper Archive wp_778, Levy Economics Institute.
    6. Marc Lavoie, 2013. "The State, the central bank and the monetary circuit," Chapters, in: Louis-Philippe Rochon & Mario Seccareccia (ed.),Monetary Economies of Production, chapter 2, pages 11-22, Edward Elgar Publishing.
    7. Marc Lavoie, 2015. "The Eurozone: Similitudes and differences with Keynes's Plan," IMK Working Paper 145-2015, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    8. Facchini François, 2016. "The Hayek-Keynes Macro Debate Continues," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 22(1), pages 1-13, July.
    9. John Smithin, 2013. "Credit creation, the monetary circuit and the formal validity of money," Chapters, in: Louis-Philippe Rochon & Mario Seccareccia (ed.),Monetary Economies of Production, chapter 5, pages 41-53, Edward Elgar Publishing.
    10. Alain Parguez, 2014. "The true rules of a good management of public finance. An explanation of the fatal Eurozone crisis," Chapters, in: Riccardo Bellofiore & Giovanna Vertova (ed.),The Great Recession and the Contradictions of Contemporary Capitalism, chapter 9, pages 151-164, Edward Elgar Publishing.

    More about this item


    EMU; Monetary Union; Monetary; Money;

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System


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