num_pages: 448
description: Why is Europe's great monetary endeavor the Euro in trouble? A string of economic difficulties in Greece Ireland Spain Italy and other Eurozone nations has left observers wondering whether the currency union can survive. In this book Markus Brunnermeier Harold James and Jean-Pierre Landau argue that the core problem with the Euro lies in the philosophical differences between the founding countries of the Eurozone particularly Germany and France. But the authors also show how these seemingly incompatible differences can be reconciled to ensure Europe's survival.As the authors demonstrate Germany a federal state with strong regional governments saw the Maastricht Treaty the framework for the Euro as a set of rules. France on the other hand with a more centralized system of government saw the framework as flexible to be overseen by governments. The authors discuss how the troubles faced by the Euro have led its member states to focus on national as opposed to collective responses a reaction explained by the resurgence of the battle of economic ideas: rules vs. discretion liability vs. solidarity solvency vs. liquidity austerity vs. stimulus.Weaving together economic analysis and historical reflection The Euro and the Battle of Ideas provides a forensic investigation and a road map for Europe's future.
language: English
title: The Euro and the Battle of Ideas
publisher: Princeton University Press