What Kind of Governance for the Eurozone?

CEPS Policy Brief No. 214

8 Pages Posted: 8 Oct 2010

See all articles by Paul De Grauwe

Paul De Grauwe

CESifo (Center for Economic Studies and Ifo Institute for Economic Research); London School of Economics & Political Science (LSE); Centre for Economic Policy Research (CEPR)

Date Written: September 29, 2010

Abstract

Much of the discussion about how to impose more convergence among member states of the eurozone has focused on what national governments should do to avoid divergent developments in a number of macroeconomic variables, e.g. competitiveness or current account imbalances. Without denying that national governments bear part of the responsibility, this paper finds that the role of governments has been over-emphasised and that conversely the role of the monetary authorities, in particular the European Central Bank, has been under-emphasised.

Keywords: eurozone, European Central Bank, member states, government, monetary authority, macroeconomic variables, competitiveness, account imbalances

Suggested Citation

De Grauwe, Paul and De Grauwe, Paul, What Kind of Governance for the Eurozone? (September 29, 2010). CEPS Policy Brief No. 214, Available at SSRN: https://ssrn.com/abstract=1688256 or http://dx.doi.org/10.2139/ssrn.1688256

Paul De Grauwe (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

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London School of Economics & Political Science (LSE) ( email )

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Centre for Economic Policy Research (CEPR)

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