THROUGH A GLASS DARKLY: THE POLITICAL FOUNDATIONS OF SUSTAINABLE EUROPEAN MONETARY UNION

Relying on recent research (e.g. Johnston, 2016; Henning, 2017; Hall, 2017), we show that the economic advance of the euro zone requires identifying a superior economic stability among the members, wherein creditor economies employ the space applicable to them to maintain economic growth. Under monetary union, economies without export-sector assisting corporatist entities lost effectiveness compared with their corporatist neighbors, experienced incessantly escalating trade/current account deficits, and depended massively on global borrowing. Institutional strengths for wage coordination were important in the advance to the euro crisis, encompassing those that facilitate diverse types of skill formation and cutting edge key to the long-run growth forecasts of an economy.