REC 27 :: 2019

ISSN edición papel: 1696-0866
ISSN edición digital: 2013-5254

EJEMPLAR COMPLETO 
ÍNDICE 

Sunday, 30 June 2019

INTRODUCCIÓN

INTRODUCTION
Sunday, 30 June 2019

20 years of the euro. Taking stock and looking forward.

  • Eladio Febrero
Saturday, 29 June 2019

ARTÍCULOS

ARTICLES
Sunday, 30 June 2019

The Past and Future of the Euro.

  • Philip Arestis
This contribution discusses the experience of the euro, and the extent to which its future is promising. The discussion begins with the Economic and Monetary Union (EMU) theoretical framework and policies, and adopted by the European Central Bank (ECB), and the extent to which fiscal policy, pursued by the EMU member countries, and monetary policy, pursued by the ECB, have been successful. The theoretical background of this approach is based on the New Consensus Macroeconomics (NCM), but it differs; and this is elaborated upon and discussed extensively. This discussion inevitably includes the post Global Financial Crisis (GFC), the Great Recession (GR) and the euro-crisis period in an attempt to examine the consistency of the theoretical background and the fiscal and monetary policies pursued. In terms of the future of the euro, the discussion just suggested enables this contribution to conclude that the extent to which the euro would survive requires further economic policies. Such policies, in addition to the current monetary policy, should be especially proper EMU fiscal policy, and other policies as discussed in this contribution. In effect this amounts to the suggestion that political integration is what is required to enable the euro to survive in the future.
Saturday, 29 June 2019

The ECB Monetary Strategy: A Critical Assessment.

  • Carlos J. Rodríguez Fuentes
  • David Padrón Marrero
This paper aims to provide a critical assessment of the performance of the ECB's monetary strategy, as well as of the substantial "de facto" changes this strategy has undergone from 2010 onwards. These changes have occurred as a consequence of the unforeseen challenges that the eurozone crisis posed to its implicit conventional monetary model of "two pillars". The standpoint of the paper is that the institutional changes the eurozone requires cannot be limited to the so-called institutional failures in the architecture of the European monetary union, but should also be extended to reconsider the underlying theoretical framework that inspires the ECB's monetary strategy.
Sunday, 30 June 2019

20 Years of the German Euro Are More than Enough.

  • Jörg Bibow
This paper reviews the performance of the euro area since the euro's launch 20 years ago. It argues that the euro crisis has exposed existential flaws in the euro regime. Intra-area divergences and the corresponding buildup of imbalances had remained unchecked prior to the crisis. As those imbalances eventually imploded, member states were found to be extremely vulnerable to systemic banking problems and abruptly deteriorating public finances. Debt legacies and high unemployment continue to plague euro crisis countries. Its huge current account surplus highlights that the euro currency union, toiling under the German euro and trying to emulate the German model, has become very vulnerable to global developments. The euro regime is flawed and dysfunctional. Europe has to overcome the German euro. Three reforms are essential to turn the euro into a viable European currency. First, divergences in competitiveness positions must be prevented in future. Second, market integration must go hand in hand with policy integration. Third, the euro is lacking a safe footing for as long as the ECB is missing a federal treasury partner. Therefore, establishing the vital treasury–central bank axis that stands at the center of power in sovereign states is essential.
Sunday, 30 June 2019

Beyond the Euro: limits to economic policy in the EU.

  • Ramon Boixadera Bosch
  • Ferran Portella Carbó
The euro's crisis is often theorized as that of a fixed exchange-rate monetary system, whose rigidity in the face of heterogenous national economies is the main factor behind the Eurozone's troubles. We argue instead that the euro should be primarily considered as a successful attempt to further the integration of the European economy within an ordoliberal framework, part of an institutional continuum stretching from the European Single Market to the present. Further, we note that the constraints placed by the euro on national economies are deeply entangled with those deriving from EU membership, so that both are likely to weigh on any attempt to break with neoliberalism at national level.
Sunday, 30 June 2019

The euro at twenty: Follies of youth?

  • Ricardo Cabral
  • Francisco Louçã
This paper overviews the early history of the euro and argues that the euro was sub-optimally designed, without monetary sovereignty of Eurozone (EZ) Member States, in order to comply with political goals set by wealthier Member States. Given this constraint, the euro architects designed a single currency in which its irreversibility is achieved through the EZ banking system, with recourse to the TARGET2 payment system. This allowed the banking systems of deficit Member States to fund large cumulative current account deficits in the first decade of the euro. The euro crisis led EZ policy makers to define new far more demanding fiscal rules and a new Banking Union to constrain the ability of EZ banking systems to fund sovereigns and current account deficits. As a result, the euro at twenty has become more fragile.
Sunday, 30 June 2019

Economic and political aspects of the persisting crisis in Southern Europe.

  • João Carlos Graça
  • Rita Gomes Correia
'Globalist' discourse became largely hegemonic in our cultural environment, one of the consequences of such hegemony, albeit mostly a performative one, being the crisis of nation-state and sovereignty. This nadir of sovereignty really expresses and reinforces a political process of mass disfranchisement, whereby democratic institutions are rendered irrelevant. The Euro experiment and the correspondent 'Europeanist' discourse ought to be understood fundamentally within this generic frame, although with a number of important specificities. Meanwhile, a big economic crisis has deeply injured the social fabric of most Southern Europe countries, worsening Euroland's regional discrepancies and producing a situation of seemingly permanent 'zero-growth' for various countries, namely Italy, Greece and Portugal. This can, however, become an occasion to interrupt the dogmatic slumber induced by Europeanism, a discussion that directly implies the consideration of multiple political aspects, relevant not only for the countries more directly impoverished, but really to all Eurozone members. This paper regards the evolution of various southern European economies since the beginning of this century, with particular emphasis on the Portuguese case, and suggests a confrontation with aspects referring to political attitudes.
Sunday, 30 June 2019

Rethinking the euro as a common currency for Europe: Keynes’s Plan revisited.

  • Sergio Rossi
This paper sets off from the monetary–structural origins of the euro-area crisis, which is not a sovereign debt crisis, but a crisis due to a lack of payment finality at international level. The first section explains that international payments across the euro area are not, to date, final for the countries concerned, as the European Central Bank does not operate as settlement institution for the national central banks involved thereby. The exploding TARGET2 imbalances observed in the aftermath of the euro-area crisis are an empirical evidence of this monetary–structural flaw. The second section suggests therefore that at the euro-area level there should be an international monetary institution issuing the euro as a common (instead of a single) currency for the euro-area member countries. Thereby those countries that are currently much in trouble within the euro area may reintroduce a national currency that allows them to recover monetary-policy sovereignty as a tool that can be used, together with fiscal policy, to steer the domestic economy in the country's own interest. The third section concludes with some policy-oriented remarks, putting to the fore the major merits of transforming the euro from a single into a common currency in order to contribute to European (monetary) integration for the common good.
Sunday, 30 June 2019

Completing the Euro: The Euro Treasury and the Job Guarantee.

  • Esteban Cruz-Hidalgo
  • Dirk H. Ehnts
  • Pavlina R. Tcherneva
The problems with the design of the Eurozone came into focus when, late in 2009, several member nations – notably Greece – failed to refinance their government debt. The crisis that followed was not entirely a surprise. When the Euro was launched in 1999, many economists warned that the single currency was unworkable. Even Eurozone optimists argued that the Euro project would eventually need to be completed. More than 10 years after the crisis, unemployment rates remain elevated and continue to threaten the social, political and economic stability of the Eurozone. The institutional constraints of the single currency however preclude bold action to address these challenges. In this paper, we suggest that tackling the twin problems of the Eurozone – its institutional flaws and mass unemployment – could be addressed by creating a Euro Treasury that would finance a Job Guarantee program, which would eliminate mass unemployment, enhance price stability, and foster social and economic integration across Europe.
Sunday, 30 June 2019

The Euro System and the Overall European Project: Failure or Fully-Fledged Success?

  • Massimo Pivetti
Some critical economists appear to believe that the European monetary union (EMU) has gone somewhat astray, and that the working of the euro area could be made significantly better if only the flawed nature of a few key theoretical underpinnings of the project was duly recognized. Quite to the contrary, it is maintained in this article that EMU has indeed been fully successful from the point of view of its actual objective, which has never been that of increasing the overall welfare of the majority of the population concerned. In the light of actual experience, EMU can be interpreted as a deliberate project to undermine wage earners' bargaining power throughout the Continent. The building of the euro system is shown in the article to have been but the way in which the epoch-making policy shift suffered by advanced capitalism as a whole since the early 1980s was brought about in continental Europe. Differently from the USA and the UK, in continental Europe that shift, with its attack on the material living conditions of wage earners, developed gradually and indirectly through the progressive draining away of national economic sovereignties. It is the removal of the nation state, coupled with the absence of a supranational political power, that the building of the euro system has largely achieved. The preservation and strengthening of this double absence is what the strenuous safeguard of the system is currently aiming at.
Sunday, 30 June 2019

CLASSIC OR FORGOTTEN AUTHORS

CLASSIC OR FORGOTTEN AUTHORS
Sunday, 30 June 2019

Rosa Luxemburg (1871-1919): Revolucíon, imperialismo y teoría económica.

  • Albert Recio Andreu
Sunday, 30 June 2019

Las tendencias de la economía capitalista.

  • Rosa Luxemburg
Sunday, 30 June 2019

RESEÑAS DE LIBROS

BOOK REVIEWS
Sunday, 30 June 2019

Gemma Cairó i Céspedes (coord.);Ramon Franquesa et al. Economia mundial. Desconstruint el capitalisme global (2018).

  • Artur Colom Jaén
Sunday, 30 June 2019

Michel Aglietta. 5,000 Years Of Debt And Power (2018).

  • Victor Manuel Isidro Luna
Sunday, 30 June 2019

Carlos Taibo. La parábola del pescador mexicano sobre trabajo, necesidades, decrecimiento y felicidad (2016).

  • German David Rodríguez Gama
Sunday, 30 June 2019

Richard Wilkinson y Kate Pickett. Igualdad. Cómo las sociedad más igualitarias mejoran el bienestar colectivo (2019).

  • Albert Recio Andreu
Sunday, 30 June 2019

Clément Carbonnier y Nathalie Morel. Le retour des domestiques (2019)

  • Eguzki Urteaga
Sunday, 30 June 2019