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Going Forward from B to A? Proposals for the Eurozone Crisis

Department of Policy Analysis and Public Management, Università Bocconi, Milano 20136, Italy
Levy Economics Institute, Bard College, Annandale-on-Hudson 12504, NY, USA
Department of Economics and Law, Università di Cassino e del Lazio Meridionale, Cassino 03043, Italy
Author to whom correspondence should be addressed.
Academic Editor: Hardy Hanappi
Economies 2016, 4(3), 18;
Received: 29 April 2016 / Revised: 10 August 2016 / Accepted: 11 August 2016 / Published: 24 August 2016
(This article belongs to the Special Issue Breakpoint of the Euro Zone?)
After reviewing the main determinants of the current Eurozone crisis, this paper discusses the feasibility of introducing fiscal currencies as a way to restore fiscal space in peripheral countries, such as Greece, which have so far adopted austerity measures in order to abide by their commitments with Eurozone institutions and the IMF. We show that the introduction of fiscal currencies would speed up the recovery, without violating the rules of Eurozone Treaties. At the same time, these processes could help the transition of the euro from its current status of single currency to a status of “common clearing currency” along the lines proposed by Keynes at Bretton Woods as a system of international settlements. Eurozone countries could therefore move from “Plan B” aimed at addressing member state domestic problems, to a “Plan A” of a better European monetary system. View Full-Text
Keywords: euro; fiscal currencies; austerity; current account imbalances, Clearing Union euro; fiscal currencies; austerity; current account imbalances, Clearing Union
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Amato, M.; Fantacci, L.; Papadimitriou, D.B.; Zezza, G. Going Forward from B to A? Proposals for the Eurozone Crisis. Economies 2016, 4, 18.

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