The Road Not Taken: A Comparison between the Hard ECU and the Euro

19 Pages Posted: 28 Oct 2015

See all articles by John Phelan

John Phelan

London School of Economics and Political Science; The Cobden Centre

Date Written: October 2015

Abstract

In the context of the Eurozone crisis this paper re‐examines the Hard ECU using the concepts of the macroeconomic trilemma and the political trilemma. We find that the Hard ECU would have been less economically and politically damaging than the euro. We conclude that it was a superior approach to monetary union.

Keywords: balance of payments crisis, currency competition, EMU, euro, Hayek, monetary union, optimum currency area

JEL Classification: E42, E52, E58, F02, F32, F33, F41, F45

Suggested Citation

Phelan, John, The Road Not Taken: A Comparison between the Hard ECU and the Euro (October 2015). Economic Affairs, Vol. 35, Issue 3, pp. 397-415, 2015. Available at SSRN: https://ssrn.com/abstract=2681402 or http://dx.doi.org/10.1111/ecaf.12142

John Phelan (Contact Author)

London School of Economics and Political Science ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

The Cobden Centre ( email )

United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
1
Abstract Views
261
PlumX Metrics