Francouzsko - Německé monetární vztahy - pnutí v základech Eurozóny

HODULÁK, Vladan and Oldřich KRPEC. Francouzsko - Německé monetární vztahy - pnutí v základech Eurozóny (Franco-German Monetary Relations - Tensions Built into the Eurozone Core). Politická ekonomie. Vysoká škola ekonomická v Praze, 2015, vol. 63, No 4, p. 413-435. ISSN 0032-3233.

Basic information

• Original name: Francouzsko - Německé monetární vztahy - pnutí v základech Eurozóny
• Name (in English): Franco-German Monetary Relations - Tensions Built into the Eurozone Core
• Authors: HODULÁK, Vladan (203 Czech Republic, belonging to the institution) and Oldřich KRPEC (203 Czech Republic, belonging to the institution).
• Edition: Politická ekonomie, Vysoká škola ekonomická v Praze, 2015, 0032-3233.

Other information

• Original language: Czech
• Type of outcome: Article in a journal
• Field of Study: 50601 Political science
• Country of publisher: Czech Republic
• Confidentiality degree: is not subject to a state or trade secret
• WWW: URL
• Impact factor: Impact factor: 0.904
• RIV identification code: RIV/00216224:14230/15:00083653
• Organization unit: Faculty of Social Studies
• UT WoS: 000361079700001
• Keywords in English: France; Germany; monetary policy; Eurozone; monetary integration

Abstract

This paper discusses the thesis that the main danger for eurozone survival does not lie in the areas that most economists have focused on; that is, it lies neither in insuffi cient regulation of the fi nancial sector (banking union) nor in fi scal irresponsibility of the European governments (fi scal compact). The eurozone technically has unlimited fi nancial resources at its disposal to solve its recent fi nancial problems, but the potential threats are rather of a political origin. The most important challenges are the distinct expectations that the strongest European economies harbored before the foundation of the eurozone. The French sought to gain more autonomy in the conduct of their domestic economic policy, which had been impeded by external constraints, particularly exacerbated by German monetary policy. The German goal was to prevent permanent upward pressure on their currency, which had been undermining their export-led economic model. These distinct expectations did partly infl uence the institutional arrangement of the Economic and Monetary Union. However, the essence of the Franco-German confl ict has not been adequately addressed and we hold that the eurozone in its current setting is not able to fully resolve it. That being said, the ECB can employ means that could allow it to postpone the solution for a very long time.

Abstract (in English)

This paper discusses the thesis that the main danger for eurozone survival does not lie in the areas that most economists have focused on; that is, it lies neither in insuffi cient regulation of the fi nancial sector (banking union) nor in fi scal irresponsibility of the European governments (fi scal compact). The eurozone technically has unlimited fi nancial resources at its disposal to solve its recent fi nancial problems, but the potential threats are rather of a political origin. The most important challenges are the distinct expectations that the strongest European economies harbored before the foundation of the eurozone. The French sought to gain more autonomy in the conduct of their domestic economic policy, which had been impeded by external constraints, particularly exacerbated by German monetary policy. The German goal was to prevent permanent upward pressure on their currency, which had been undermining their export-led economic model. These distinct expectations did partly infl uence the institutional arrangement of the Economic and Monetary Union. However, the essence of the Franco-German confl ict has not been adequately addressed and we hold that the eurozone in its current setting is not able to fully resolve it. That being said, the ECB can employ means that could allow it to postpone the solution for a very long time.

Links

• EE2.3.30.0009, research and development project: Name: Zaměstnáním čerstvých absolventů doktorského studia k vědecké excelenci