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The Euro was a massive mistake. Economists can barely agree on how monetary supply works in a single country's economy, why not stitch a bunch of them together

The Euro was a massive mistake. Economists can barely agree on how monetary supply works in a single country's economy, why not stitch a bunch of them together and see how it goes? If you believe even a small part of Modern Monetary Theory has any value, tying multiple sovereign nations to the same currency is simply not an option.

ebg13 7y ago
> The Euro was a massive mistake. Economists can barely agree on how monetary supply works in a single country's economy, why not stitch a bunch of them together and see how it goes? EU members are exactly like states in the USA. They each have their own independent economic interests, their own independent sets of laws governed by central overriding principles and legislation, and they share a currency. So you may as well be saying that the US Dollar was a massive mistake.
- skrtskrt 7y ago
  Steve Keen is a good source on this: https://braveneweurope.com/steve-keen-the-delusional-leaders-of-the-eurozone https://braveneweurope.com/steve-keen-the-delusional-leaders... https://braveneweurope.com/steve-keen-the-euro-is-a-suicide-pact https://braveneweurope.com/steve-keen-the-euro-is-a-suicide-...
  - ebg13 7y ago
    Ok, how does Steve Keen feel about the USA reverting to pre-1792 colonial currencies?
    - skrtskrt 7y ago
      Us States are not equal to European countries in any of the ways that matter here: they can’t have their own central banks or issue their own currencies, can’t decide general banking policies, can’t control trade in any meaningful way. A better analogy of US states to Europe is provinces of a country - their economic powers are extremely limited, and on the scale of macroeconomics, nearly meaningless.
contravariant 7y ago
Well it's not like economists are totally unaware what effect the Euro would have. It's been known for quite a while that you can't have a fixed exchange rate, free capital movement and independent monetary policy.

ebg13 7y ago

> The Euro was a massive mistake. Economists can barely agree on how monetary supply works in a single country's economy, why not stitch a bunch of them together and see how it goes? EU members are exactly like states in the USA. They each have their own independent economic interests, their own independent sets of laws governed by central overriding principles and legislation, and they share a currency. So you may as well be saying that the US Dollar was a massive mistake.

skrtskrt 7y ago
Steve Keen is a good source on this: https://braveneweurope.com/steve-keen-the-delusional-leaders-of-the-eurozone https://braveneweurope.com/steve-keen-the-delusional-leaders... https://braveneweurope.com/steve-keen-the-euro-is-a-suicide-pact https://braveneweurope.com/steve-keen-the-euro-is-a-suicide-...
- ebg13 7y ago
  Ok, how does Steve Keen feel about the USA reverting to pre-1792 colonial currencies?
  - skrtskrt 7y ago
    Us States are not equal to European countries in any of the ways that matter here: they can’t have their own central banks or issue their own currencies, can’t decide general banking policies, can’t control trade in any meaningful way. A better analogy of US states to Europe is provinces of a country - their economic powers are extremely limited, and on the scale of macroeconomics, nearly meaningless.

contravariant 7y ago

Well it's not like economists are totally unaware what effect the Euro would have. It's been known for quite a while that you can't have a fixed exchange rate, free capital movement and independent monetary policy.