Prospects for the Eurozone

Konzelmann, Suzanne J. and Blankenberg, S. and King, L. and Wilkinson, F. (2013) Prospects for the Eurozone. Cambridge Journal of Economics 37 (3), pp. 463-477. ISSN 0309-166X.

Abstract

For Wim Duisenberg, the euro’s perceived independence from the nation state was a path-breaking achievement, to be proud of and to cherish. Little more than a decade later—and three years into the deepest economic crisis Europe has known since the Great Depression—Duisenberg’s elation rings strangely anachronistic, since what the ‘nationless’ euro seems to have achieved, above all, is to undermine whatever ‘mutual confidence at the heart of our community’ there may have been at the start. This Special Issue takes stock of the euro crisis so far. It is concerned with the in-depth analysis of its main causes, policy proposals for a recovery from the crisis and reform strategies for the reconstruction of a more viable and egalitarian eurozone in the future. This Introduction provides an overview of both core features of the euro crisis and related debates, as well as individual contributions to this Special Issue. Section 1 examines the origins of the euro crisis; Section 2 reviews key policy developments in the evolution of the crisis, from its onset in May 2010 to the adoption of outright monetary transactions (OMTs) by the European Central Bank (ECB) in September 2012; and Section 3 provides an overview of the contributions to the Special Issue.

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