Policy Rules in the Economic and Monetary Union

This Intereconomics article is available for free at this page after an embargo period of two years. Reading it before then is possible via SpringerLink.This paper studies whether a monetary union can be managed solely by a rule-based approach. The Five Presidents’ Report of the European Union rejected this idea. It suggested a centralisation of powers.

The authors analyse the philosophy of policy rules from the vantage point of the German economic school of thought. There is evidence that a monetary union consisting of sovereign states is well organised by rules, together with the principle of subsidiarity.

The root cause of the euro crisis is rather the weak enforcement of rules, compounded by structural problems. Therefore, the authors suggest a genuine rule-based paradigm for a stable future of the Economic and Monetary Union.

Intereconomics: Archive http://archive.intereconomics.eu/years/

SpringerLink: Intereconomics http://link.springer.com/journal/10272

ESO: Background information: Euro area reforms [What Think Tanks are thinking] http://www.europeansources.info/record/euro-area-reforms-what-think-tanks-are-thinking/

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