Monnet's error?

Luigi Guiso, Paola Sapienza, Luigi Zingales

Research output: Contribution to journalArticlepeer-review

10 Scopus citations

Abstract

In entering a currency union without any political union European countries have taken a gamble: will the needs of the currency unions 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.

Original languageEnglish (US)
Pages (from-to)249-297
Number of pages49
JournalEconomic Policy
Volume31
Issue number86
StatePublished - Apr 1 2016

ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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