Over time, banking and sovereign debt crises have laid bare the original design flaws in the European Monetary Union (EMU), which sorely needed a blueprint to guide the region through financial tumult. According to this cogent essay by economists André Sapir and Dirk Schoenmaker, a transformation of the European Stability Mechanism – by expanding its responsibilities and reforming its governance – into a European Monetary Fund would help close gaps in the EMU edifice. getAbstract recommends this succinct but innovative text to policy analysts and experts.
In this summary, you will learn
- Why the European Monetary Union lacked appropriate systems to handle regional financial and fiscal crises,
- What important gaps remain in ensuring economic stability, and
- How creating a European Monetary Fund could help deal with future crises.
About the Authors
André Sapir and Dirk Schoenmaker are economists with Bruegel, a European think tank.