Currency Union without a Political Union: Implications for the European Monetary Union
Mehdi Monadjemi, John Lodewijks

Abstract
Following the Greek Financial Crisis of 2015 there has been a reassessment of the net benefits to be derived from a Currency Union. Some observers are supporting a ‘Grexit’ strategy while others are looking at ways to mend the structural weaknesses of a currency union. This article follows this second approach and suggests some policy options that, without infringing on political sovereignty, may strengthen the Eurozone. In particular, the article reintroduces the concept of automatic stabilizers in a regional context.

Full Text: PDF