From the European Monetary Union to a euro–bancor: a stock–flow consistent assessment

Sebastian Valdecantos, Jacques Mazier

Research output: Contribution to journalJournal articleResearchpeer-review

8 Citations (Scopus)

Abstract

The crisis of the euro area has questioned the fairness, sustainability and viability of the current setting of the European Monetary Union (EMU). In this article we use a four-country stock–flow consistent (SFC) model in the tradition of Godley/Lavoie (2007a) to examine to what extent an adaptation to Europe of Keynes's plan of a clearing union with bancor balances could help reduce the imbalances that, at least in part, drove the eurozone into crisis. Our simulation experiments suggest that the implementation of Keynes's ideas may conduct European countries to a stronger and more sustainable growth cycle.
Original languageEnglish
JournalEuropean Journal of Economics and Economic Policies: Intervention
ISSN2052-7764
DOIs
Publication statusPublished - Apr 2019
Externally publishedYes

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