Articles on Issue Theme
Bogdan GLĂVAN
Universitatea Româno-Americană
The enlargement of the eurozone toward Eastern Europe is considered by many as a solution for the present economic crisis. The paper analysis the process of european monetary integration and shows that much of the literature is flawed when it comes to explain the determinants and consequences of european common currency. The enlargement of european monetary union cannot alleviate the present economic turmoil and, in the long run, will not increase society’s welfare. This verdict is based on the thesis that european monetary unification does not reflect the wishes of the people, of the community of money users, but political considerations. European monetary integration is not the outcome of a competitive process, with the most fitted currency prevailing on the market, but represents a monopolization of money production through political means. The political control of money production is exercised in order to increase taxation and redistribution using inflation and credit expansion. As a corrolarry, the birth of euro is related to the process of unsustainable growth (boom) and succeeding crises (bust) and consequently the common european currency cannot represent a method to avoid this kind of phenomena in the future.
ŒCONOMICA no. 1/2009
Keywords: european and monetary union, economic crisis, monetary union
JEL: E42, F33
Euro ca strategie politică
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