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Reflections on Americans' Views of the Euro Ex Ante

  • Martin S. Feldstein

This paper was prepared for a session of the 2009 American Economic Association meeting devoted to examining the views of American economists about the euro and the European Economic and Monetary Union on the tenth anniversary of the euro. I had written an article in 1992 in the Economist and subsequent articles in the Journal of Economic Perspecties and in Foreign Affairs. I begin by reviewing the arguments that I offered at that time about the claimed advantages of a single currency and about what I regarded as the disadvantages. I then discuss my claims that the primary motivation for the creation of the euro was political, not economic and that the creation of the euro could lead to increased conflict within Europe and with the United States. I conclude with a discussion of the implications for the EMU of the current recession and the likely future economic conditions in Europe.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14696.

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Date of creation: Jan 2009
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Handle: RePEc:nbr:nberwo:14696
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