European Monetary Union as a stabilizing factor in the circumstances of economic crisis

The authors examine the problems the European Monetary Union in the circumstances of the global economic crisis. They especially elaborated the battle for the financial stability of the European Monetary Union. The authors problematize the interaction of the European Central Bank and national central banks, emphasizing the deficiencies in the coordination of fiscal and monetary policy. They investigated the reasons that require a cautious strategy when it comes to the admission of new member states into the European Monetary Union and in that sense the conditions for nominal and real convergence. The authors consider the management of the economic crisis and the introduction of new institutions with the task to stabilize the situation in the monetary field. They explored the problems of helping countries like Greece from the point of view of the developed countries relationship. The authors especially paid attention to the level of transparency in relation to their citizens when making decisions on certain aid giving issues. They have proposed solutions for getting out of the vicious circle and the need to redesign the European Monetary Union and in this context the problem of the stabilization of the euro in order for it to be competitive with the dollar.

Download Full-text

The Failure of European Governance of the Crisis

European Review ◽

10.1017/s1062798714000210 ◽

2014 ◽

Vol 22 (3) ◽

pp. 361-381 ◽

Cited By ~ 1

Author(s):

Javier Bilbao-Ubillos

Keyword(s):

International Economic ◽

Economic Crisis ◽

Monetary Union ◽

European Monetary Union ◽

Economic Governance ◽

Euro Crisis ◽

Exit Strategy ◽

European Monetary ◽

European Governance ◽

The Eu

The current euro crisis, considered by the IMF to be the new heart of the international economic crisis, has its historical roots in the process of construction of the European Monetary Union (EMU). The resulting architecture of economic governance in the EU has revealed itself to contain serious shortcomings in both ideological terms (design of a coherent exit strategy) and institutional terms (procedures, irreversibility and implementation times of the decisions made). As a result, the responses made by Europe have been late, hesitant, sometimes lacking in intensity and inconsistent in their attempts to manage the crisis.

Download Full-text

Nominal and Real Convergence as a Determinant for Joining the European Monetary Union

ECONOMICS ◽

10.1515/eoik-2017-0011 ◽

2017 ◽

Vol 5 (1) ◽

pp. 52-71

Author(s):

Merim Kasumović ◽

Erna Heric

Keyword(s):

Central Bank ◽

Monetary Union ◽

European Monetary Union ◽

European Central Bank ◽

Financial Integration ◽

Convergence Criteria ◽

European Monetary ◽

European Central ◽

Real Convergence ◽

The Stability

Summary The thematic framework of this work is the nominal and real convergence as a determinant for joining the European monetary union. The focus of the work is to prove that realising the criteria of the convergence affects the stability of the European monetary union, that is, that the cause of destabilisation is exactly the fact that certain member nations have not realised the assigned convergence criteria. The financial integration is an important question because it contributes to the economic growth affecting free exchange with the goal of a more efficient allocation of capital; it is the result of the economic theory and the empirical research. Introducing the Euro as a single payment method while losing the monetary sovereignty of the countries which have accepted it is the main reason for forming the European Central Bank. The mission of the European Central Bank is to define and conduct a single monetary policy within the Eurozone. Because of the already mentioned facts, the challenges of conducting the fiscal policy within the Eurozone as well as the key aspects of the monetary unification of Europe have been analysed. The results of this analysis should point out the stability of the EMU by the convergence degree of the member nations from a single monetary area.

Download Full-text

Financial Stability In The Eurozone

Comparative Economic Research ◽

10.1515/cer-2016-0009 ◽

2016 ◽

Vol 19 (1) ◽

pp. 155-175

Author(s):

Klaudia Zielińska

Keyword(s):

Monetary Union ◽

Financial Stability ◽

Final Section ◽

Debt Crisis ◽

Developed Countries ◽

Common Currency ◽

European Monetary ◽

The Subject ◽

The Common ◽

The Moment

Financial stability inside the European Monetary Union (EMU) is a trendy topic in most developed countries around the world. From the moment the EMU was brought to life, there was much speculation about its imperfections, inadequate management, and vulnerability. Some of them have turned out to be true, while others have been proved invalid. Nevertheless, the debt crisis has demonstrated inadequacies in the EMU’s structure and proved that a higher degree of integration is necessary in order to guarantee the robustness of the common currency and fully utilize its potential. This article summarizes the most serious doubts with respect to the functioning of the monetary union and evaluates their credibility over time. New financial stability-securing solutions are also described and analyzed as to whether they are sufficient to prevent Europe from stumbling from one crisis to another. The subject is analyzed over different periods of time – firstly describing the term “financial stability”, along with the major concerns about the process of introducing the euro at the time of its finalization and implementation. Secondly the article describes how these preceding doubts have been verified during the following fourteen years of the EMU’s functioning. The revealed weaknesses of the EMU are also underlined in order to prove the need of further integration. The final section summarizes the solutions implemented in response to the crises that have hit Europe during the time of the Euro’s functioning.

Download Full-text