The Road Not Taken: A Comparison Between the Hard ECU and the Euro |
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| Authors: | John Phelan |
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| Affiliation: | Capital EconomicsThe author would like to thank Dr Olivier Accominotti for his comments on an early draft of this paper. |
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| Abstract: | In the context of the Eurozone crisis this paper re‐examines the Hard ECU using the concepts of the macroeconomic trilemma and the political trilemma. We find that the Hard ECU would have been less economically and politically damaging than the euro. We conclude that it was a superior approach to monetary union. |
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| Keywords: | E42 E52 E58 F02 F32 F33 F41 F45 balance of payments crisis currency competition EMU euro Hayek monetary union optimum currency area |
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