IDEAS home Printed from https://ideas.repec.org/a/ces/ifosdt/v64y2011i23p12-25.html
   My bibliography  Save this article

Euro crisis: Is a temporary introduction of a parallel currency a solution for the troubled states?

Author

Listed:
  • Dirk Meyer
  • Michael Vogelsang
  • Anton Beer
  • André ten Dam

Abstract

The euro and financial crisis is calling into question the very existence of the European Monetary Union. Dirk Meyer, Helmut Schmidt University Hamburg, sees the introduction of temporary parallel national currencies as one way for the weaker euro countries to respond in a timely manner to weaknesses in their economies while simultaneously remaining in the EMU. For Michael Vogelsang, Federal Association of Medium-Sized Enterprises, the main argument for a dual currency is the opportunity for currency depreciation under flexible exchange rates. A temporary or permanent introduction of a parallel currency – in addition to a European currency (euro) – in which for example salaries, pensions, state benefits and real estate can be assessed and that would be subject to an exchange rate regulatory mechanism could, in the opinion of Anton Beer, www.rettet initiative-the-eu.de, as well as André ten Dam, help restore the competitiveness of weaker euro countries.

Suggested Citation

  • Dirk Meyer & Michael Vogelsang & Anton Beer & André ten Dam, 2011. "Euro crisis: Is a temporary introduction of a parallel currency a solution for the troubled states?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 64(23), pages 12-25, December.
    • Handle: RePEc:ces:ifosdt:v:64:y:2011:i:23:p:12-25
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/ifosd_2011_23_2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Vaubel, Roland, 1990. "Currency Competition and European Monetary Integration," Economic Journal, Royal Economic Society, vol. 100(402), pages 936-946, September.
    2. Willem H. Buiter, 2007. "Is Numerairology the Future of Monetary Economics? Unbundling numeraire and medium of exchange through a virtual currency and a shadow exchange rate," NBER Working Papers 12839, National Bureau of Economic Research, Inc.
    3. Aslanidis, Nektarios & Kouretas, Georgios P., 2005. "Testing for two-regime threshold cointegration in the parallel and official markets for foreign currency in Greece," Economic Modelling, Elsevier, vol. 22(4), pages 665-682, July.
    4. Wilhelm Kohler, 2011. "Balance of payments crises in the euro system: Greece in the role of a reserve currency country?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 64(16), pages 12-19, September.
    5. Hans-Werner Sinn & Timo Wollmershäuser, 2011. "Target-Kredite, Leistungsbilanzsalden und Kapitalverkehr: Der Rettungsschirm der EZB," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 64, pages 01-29, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dirk Meyer, 2012. "The Concept of National Parallel Currencies for the Eurozone," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 65(16), pages 19-28, August.
    2. Hans-Werner Sinn, 2012. "Die Target-Kredite der Deutschen Bundesbank," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 65, pages 03-34, March.
    3. Rewel, Thomas, 2013. "Target-2-Salden - Fluch oder Segen für das Eurosystem?," EconStor Preprints 97621, ZBW - Leibniz Information Centre for Economics.
    4. Henryk Bak & Sebastian Maciejewski, 2015. "Asymmetric shocks and international risk sharing in the European Monetary Union and the European Union," Bank i Kredyt, Narodowy Bank Polski, vol. 46(6), pages 523-564.
    5. Buiter, Willem H., 2009. "Negative nominal interest rates: Three ways to overcome the zero lower bound," The North American Journal of Economics and Finance, Elsevier, vol. 20(3), pages 213-238, December.
    6. Charles B. Blankart, 2012. "The Euro in 2084," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(SPECIALIS), pages 23-28, February.
    7. Hans-Werner Sinn, 2011. "How to Rescue the Euro: Ten Commandments," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(04), pages 52-56, December.
    8. Bąk Henryk & Maciejewski Sebastian, 2015. "Endogeneity and Specialization in the European Monetary Union," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 46(1), pages 7-40, June.
    9. Meyer Dirk, 2017. "Gemeinschaftswährung mit Kaufkraftgarantie auf Kapitalbasis – Das Konzept eines kapitalfundierten Hart-Euro," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 66(2), pages 179-207, August.
    10. Klaus Reeh, 2011. "Balance of payments in the currency union: recent events make an old question appear in a new light," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 64(16), pages 90-94, September.
    11. George C. Bitros, 2018. "Monetary Policy, Market Structure and the Income Shares in the U.S," Open Economies Review, Springer, vol. 29(2), pages 383-413, April.
    12. Christian Fahrholz & Andreas Freytag, 2011. "More market elements as one solution for the European balance of payments crisis?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 64(16), pages 73-78, September.
    13. Charles B. Blankart & Peter Spahn & Henrik Enderlein & Sebastian Hauptmeier & Fédéric Holm-Hadulla & Max Otte, 2012. "EU Summit: Can a Fiscal Union Save the Euro?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 65(03), pages 03-20, February.
    14. Stefan Homburg, 2012. "Notes on the Target2 Dispute," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(SPECIALIS), pages 50-54, February.
    15. Marcel Fratzscher & Philipp König & Claudia Lambert, 2013. "TARGET Balances - An Anchor of Stability," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 3(11/12), pages 3-11.
    16. Schnabl Gunther & Müller Sebastian, 2019. "The Brexit as a Forerunner: Monetary Policy, Economic Order and Divergence Forces in the European Union," The Economists' Voice, De Gruyter, vol. 16(1), pages 1-18, December.
    17. Vaubel, Roland, 1997. "The bureaucratic and partisan behavior of independent central banks: German and international evidence," European Journal of Political Economy, Elsevier, vol. 13(2), pages 201-224, May.
    18. H.P. Grãœner & C. Hefeker, 1995. "Domestic pressures and the exchange rate regime: why economically bad decisions are politically popular?," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 48(194), pages 331-350.
    19. Hans-Werner Sinn & Timo Wollmershäuser, 2012. "Target loans, current account balances and capital flows: the ECB’s rescue facility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(4), pages 468-508, August.
    20. Von dem Berge, Lukas, 2014. "Parallel currencies in historical perspective," CAWM Discussion Papers 75, University of Münster, Münster Center for Economic Policy (MEP).

    More about this item

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • F30 - International Economics - - International Finance - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ifosdt:v:64:y:2011:i:23:p:12-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/ifooode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.