NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Monnet's Error?

Luigi Guiso, Paola Sapienza, Luigi Zingales

NBER Working Paper No. 21121
Issued in April 2015
NBER Program(s):International Finance and Macroeconomics, Monetary Economics

Entering a currency union without any political union European countries have taken a gamble: will the needs of the currency union force a political integration (as anticipated by Monnet) or will the tensions create a backlash, as suggested by Kaldor, Friedman and many others? We try to answer this question by analyzing the cross sectional and time series variation in pro-European sentiments in the EU 15 countries. The 1992 Maastricht Treaty seems to have reduced the pro-Europe sentiment as does the 2010 Eurozone crisis. Yet, in spite of the worst recession in recent history, the Europeans still support the common currency. Europe seems trapped: there is no desire to go backward, no interest in going forward, but it is economically unsustainable to stay still.

download in pdf format
   (1442 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w21121

Published:

  • Luigi Guiso & Paola Sapienza & Luigi Zingales, 2016. "Monnet’s error?," Economic Policy, CEPR;CES;MSH, vol. 31(86), pages 247-297. citation courtesy of
  • Luigi Guiso, Paola Sapienza, Luigi Zingales; Monnet’s error?, Economic Policy, Volume 31, Issue 86, 1 April 2016, Pages 247–297, https://doi.org/10.1093/epolic/eiw003 citation courtesy of

Users who downloaded this paper also downloaded* these:
Freeman and Huang w21081 China's “Great Leap Forward” in Science and Engineering
Bhandari and Frankel w20898 Nominal GDP Targeting for Developing Countries
Aguiar, Amador, Farhi, and Gopinath w20277 Coordination and Crisis in Monetary Unions
Bhattarai, Eggertsson, and Schoenle w19886 Is Increased Price Flexibility Stabilizing? Redux
Fang, Gu, Xiong, and Zhou w21112 Demystifying the Chinese Housing Boom
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us