TY  - JOUR
AU  - Feldstein,Martin
TI  - The Political Economy of the European Economic and Monetary Union: Political Sources of an Economic Liability
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6150
PY  - 1998
Y2  - February 1998
UR  - http://www.nber.org/papers/w6150
L1  - http://www.nber.org/papers/w6150.pdf
N1  - Author contact info:
Martin S. Feldstein
President Emeritus
NBER
1050 Massachusetts Avenue
Cambridge, MA  02138-5398
Tel: 617/868-3905
Fax: 617/868-7194
E-Mail: msfeldst@nber.org
AB  - EMU would be an economic liability.  A single currency would cause at most small trade and investment gains but would raise average cyclical unemployment and would probably raise inflation, perpetuate structural unemployment, and increase the risk of protectionism.  EMU is nevertheless  being pursued in order to create a political union.  Fundamental disagreements among member states about economic policies, foreign and military policies, and the sharing of political power are likely to create future intra-European conflicts.  A united Europe would be a formidable participant in the 21st century's global balance of power, with uncertain consequences for world stability and peace.
ER  -