Friday, July 19, 2019
Is the European Monetary Union a disaster? ? Discuss Essay examples --
Abstract This essay evaluates the development of the EMU; a system that only came into effect three years ago. Through the lack of recent literature most of the evidence are derived from articles of various sources. The essay takes into consideration that the EMU is embedded in a generally declining world economy. It illustrates why the EMU did not reach their targeted goals immediately and points out shortcomings in the architecture of the EMU in the Maastricht Treaty that ought to be reformed. It takes the viewpoint that although since the introduction of the Euro there is an apparent recession in the Euro area countries, it is not entirely to be blamed on new currency and that the allegation that the EMU is a disaster is totally unfounded. For over thirty years now a European Monetary Union has belonged to the articulated aims of the European Union. All previous attempt to establish a Monetary Union, such as the so-called â€Å"Werner- Plans†in 1979 through the European Monetary System (EMS), failed though. In 2002 the EMU finally was put into full effect. Now that the Euro- countries have experienced three years with the Euro, it is possible to make a preliminary assessment of the Euro.      In order to detect whether ‘EMU is a disaster’ one has first to establish the meaning and context in which the term ‘disaster’ is used in relation to this question. The Oxford Dictionary defines the term ‘disaster’ as a ‘complete failure’ . In accordance to this definition one would expect the European Monetary Union to have an utter negative impact on the Euro countries, this could include a weak currency and business activity, a high inflation rate, a refusal of acceptance of the new currency from the citizens and a counter effect on the aim towards deeper European integration. In order to fulfil the aims of this essay, it will try to analyse the impact of the introduction of the Euro with the following criteria: first, it will outline the intentions for the introduction of the Euro and the advantages economist and member states had hoped to gain from it. Next, the essay will look at the reaction the Euro has caused in the economi c and business cycles of the euro-area states and assess the capability of the European Central Bank (ECB) to deal with economic fluctuation. The next step will be to analyse the reaction of the public to th... ...bsp;   European Central Bank EMU          European Monetary Union GDP          Gross Domestic Product HCIP          Harmonised Index of Consumer Prices SGP          Stability and Growth Pact Bibliography Pearsall, J. (ed.) (1999): The Concise Oxford Dictionary ( Tenth Edition) Oxford University Press, Oxford. Hankel, W, Nà ¶lling, W, Schachtschneider K, Starbatty, J (2001) : Die Euro-Illusion, Ist Europa noch zu retten? Rowohlt Taschenbuch Verlag, Hamburg The Economist: Rules are made to bend, aren’t they?. Jul 25th 2002 Stierand, H ( 2002): Geldpolitik im Europà ¤ischen System der Zentralbanken (ESZB), Winkler Verlag, Darmstadt Renne, B (2001): Die Europà ¤ische Wirtschafts – und Wà ¤hrungsunion zwischen Anspruch und Wirklichkeit ( The European Economic- and Monetary Union between expectations and reality) Peter Lang, Frankfurt Stierand, H ( 2002): Geldpolitik im Europà ¤ischen System der Zentralbanken (ESZB), Winkler Verlag, Darmstadt www.bis.org/review/ r021122b.pdf
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