Richmond’s Sabine Spangenberg publishes paper entitled “The Euro: A German Tale” in WiST Wirtschaftswissenschaftliches Studium
The paper aims to identify a German economic policy position in origin and direction since World War II.
Fundamental features are the Waehrungsreform, the independence of the Deutsche Bundesbank and the Stability Law. The Eurocrisis must be placed within its historical context and within the institutional framework to allow an assessment of functional versus structural deficiencies. It is here argued that the focus on price stability singularly cannot maintain fiscal stability without fiscal redistribution, but to prevent fiscal redistribution, policy harmonisation is vital. Neither European macroeconomic policy nor the functional conditions of the monetary union were sufficiently addressed in the Euro zone creation. The structural criteria of a currency union must be supplemented by political consolidation in the form of a concerted European action.