IDEAS home Printed from https://ideas.repec.org/p/nbp/nbpmis/155.html
   My bibliography  Save this paper

Controlled dismantlement of the Eurozone: A proposal for a New European Monetary System and a new role for the European Central Bank

Author

Listed:
  • Stefan Kawalec

    (Capital Strategy Sp. z o. o.)

  • Ernest Pytlarczyk

    (BRE Bank S.A.)

Abstract

In Kawalec and Pytlarczyk (2013), we argue that the single European currency constitutes a serious threat to the European Union and the Single European Market,and we propose a controlled dismantlement of the Eurozone. In this paper, we undertake a deeper analysis of the measures which would minimize the risks throughout the process of the Eurozone dismantlement and contribute to rebuilding confidence in the future of Europe. · The dismantlement should be the result of a consensual decision to replace the euro with an alternative system of currency coordination. · The dismantlement should start with the exit of the most competitive countries. In the meantime, the euro should remain the common currency of less competitive countries. · The European Central Bank (ECB) should be preserved as the central bank for all 17 Eurozone member countries, even after some of those countries have replaced the euro with new currencies. In this capacity, the ECB should be in charge of designing,preparing, and implementing the segmentation of the Eurozone as well as managing the new currency coordination system – European Monetary System 2. · The forthcoming EU – USA free trade agreement would build new momentum for economic growth and contribute to restoring confidence in the future of Europe. As of today, neither the member states of the Eurozone nor European institutions such as the European Commission or the ECB have been able to come up with a game-changing proposal such as the Eurozone dismantlement. However, this may change as a result of adverse economic and political developments. One of the potential triggers could be the situation in France. Classification-JEL: E5, E58, F15, F31, G18

Suggested Citation

  • Stefan Kawalec & Ernest Pytlarczyk, 2013. "Controlled dismantlement of the Eurozone: A proposal for a New European Monetary System and a new role for the European Central Bank," NBP Working Papers 155, Narodowy Bank Polski.
    • Handle: RePEc:nbp:nbpmis:155
    as

    Download full text from publisher

    File URL: https://static.nbp.pl/publikacje/materialy-i-studia/155_en.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stefan Kawalec & Ernest Pytlarczyk, 2013. "Controlled Dismantlement of the Eurozone: A Strategy to Save the European Union and the Single European Market," German Economic Review, Verein für Socialpolitik, vol. 14(1), pages 31-49, February.
    2. 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.
    3. Stefan Kawalec & Ernest Pytlarczyk, 2012. "Controlled Dismantlement of the Euro Area in Order to Preserve the European Union and Single European Market," CASE Network Studies and Analyses 441, CASE-Center for Social and Economic Research.
    4. Anonymous, 1969. "I. United Nations," International Organization, Cambridge University Press, vol. 23(4), pages 971-989, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eckert, Sandra & Lindner, Vincent & Nölke, Andreas, 2020. "EMU reform proposals and their (non) implementation: An overview," SAFE White Paper Series 78, Leibniz Institute for Financial Research SAFE.
    2. Stefan Kawalec, 2015. "The permanent necessity to undervalue the euro endangers Europe’s trade relations," a/ Working Papers Series 1509, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
    3. Zdenek Kudrna, 2014. "The future of the Euro: agreements to disagree and prospective scenarios from the 2014 Vienna debate," Working Papers of the Vienna Institute for European integration research (EIF) 3, Institute for European integration research (EIF).

    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. Ciżkowicz, Piotr & Radzikowski, Bartosz & Rzońca, Andrzej & Wojciechowski, Wiktor, 2020. "Fiscal devaluation and economic activity in the EU," Economic Modelling, Elsevier, vol. 88(C), pages 59-81.
    2. Radu SIMANDAN, 2020. "A gentle sceptic: Martin Feldstein and the euro," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 378-395, December.
    3. Brigitte Granville & Dominik Nagly, 2013. "Determinants of relative bargaining power in monetary unions," Working Papers 47, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    4. Stefan Kawalec, 2015. "The permanent necessity to undervalue the euro endangers Europe’s trade relations," a/ Working Papers Series 1509, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
    5. Dariusz K. Rosati, 2013. "Czy Polska powinna przystąpić do strefy euro?," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 10, pages 5-37.
    6. Eladio Febrero & Jorge Uxó & Óscar Dejuán, 2015. "The ECB During the Financial Crisis. Not so Unconventional!," Metroeconomica, Wiley Blackwell, vol. 66(4), pages 715-739, November.
    7. Hans-Werner Sinn, 2012. "Target Losses in Case of a Euro Breakup," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(04), pages 51-58, December.
    8. Elizabeth Bartholet, 2011. "Ratification by the United States of the Convention on the Rights of the Child: Pros and Cons from a Child’s Rights Perspective," The ANNALS of the American Academy of Political and Social Science, , vol. 633(1), pages 80-101, January.
    9. Roger R. Betancourt, 1969. "R. A. EASTERLIN. Population, Labor Force, and Long Swings in Economic Growth: The American Experience. Pp. xx, 298. New York: National Bureau of Economic Research (Distributed by Columbia University P," The ANNALS of the American Academy of Political and Social Science, , vol. 384(1), pages 183-192, July.
    10. Francesco Papadia, 2014. "Operational Aspects of a Hypothetical Demise of the Euro," Journal of Common Market Studies, Wiley Blackwell, vol. 52(5), pages 1090-1102, September.
    11. Rott, Nandor, 1981. "Theoretical and Methodological Problems of Income Regulation in the Hungarian Food Economy," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 48.
    12. Raphael Fischer & Gunther Schnabl, 2018. "Regional heterogeneity, the rise of public debt and monetary policy in post-bubble Japan: lessons for the EMU," International Economics and Economic Policy, Springer, vol. 15(2), pages 405-428, April.
    13. Edward L. Glaeser, 2021. "Urban Resilience," NBER Working Papers 29261, National Bureau of Economic Research, Inc.
    14. Sakiko Fukuda-Parr & Terra Lawson-Remer & Susan Randolph, 2008. "Measuring the Progressive Realization of Human Rights Obligations: An Index of Economic and Social Rights Fulfillment," Working papers 2008-22, University of Connecticut, Department of Economics.
    15. Paulson, Jo Ann, 1977. "Rural Labor Policies In The Agricultural Development Strategies Of The People'S Republic Of China," Staff Papers 13594, University of Minnesota, Department of Applied Economics.
    16. Kondwani Msowoya & Kaveh Madani & Rahman Davtalab & Ali Mirchi & Jay R. Lund, 2016. "Climate Change Impacts on Maize Production in the Warm Heart of Africa," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(14), pages 5299-5312, November.
    17. 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.
    18. Andrea Bonilla‐Bolaños, 2021. "A step further in the theory of regional integration: A look at the South American integration strategy," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(5), pages 845-873, July.
    19. Peter Wierts & Henk Van Kerkhoff & Jakob De Haan, 2014. "Composition of Exports and Export Performance of Eurozone Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 52(4), pages 928-941, July.
    20. Aaron Tornell & Frank Westermann, 2012. "Greece: The Sudden Stop That Wasn’t," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(1), pages 102-103, February.

    More about this item

    Keywords

    Eurozone crisis; Euro breakup; European Central Bank; Dismantlement of the Eurozone; currency coordination; European Monetary System 2.;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F15 - International Economics - - Trade - - - Economic Integration
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:nbp:nbpmis:155. 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: Jakub Growiec (email available below). General contact details of provider: https://edirc.repec.org/data/nbpgvpl.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.