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The Political Economy of Monetary Solidarity
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The Political Economy of Monetary Solidarity: Understanding the Euro Experiment

Waltraud Schelkle


Creating the European monetary union between diverse and unequal nation states is one of the biggest social experiments in history. This book offers an explanation of how the euro experiment came about and was sustained despite a severe crisis. A comparison with the US dollar area, another diverse monetary union, shows illuminating parallels. The euro experiment can be understood as risk sharing through a currency that is issued by a supranational central bank. A single currency shares liquidity risks by creating larger markets for all financial assets. A single monetary policy responds to bus ... More

Keywords: collective action problems, common pool resources, euro, financial crisis, financial markets, insurance, migration, monetary integration, risk sharing, US monetary history

Bibliographic Information

Print publication date: 2017 Print ISBN-13: 9780198717935
Published to Oxford Scholarship Online: April 2017 DOI:10.1093/acprof:oso/9780198717935.001.0001


Affiliations are at time of print publication.

Waltraud Schelkle, author
Professor of Political Economy, London School of Economics and Political Science