The Euro, a False Modern Money?

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Erwan MAHÉ 00 33 1 53 05 57 Allocation d'Actifs et Stratégies d'Options

Isegoria Rules!

The Euro, a false Modern Money?

A few economists like Wynne Godley, L.Randall Wray, Warren Mosler, and Stephanie Bell had clearly predicted the procyclical, deflationist and self-defeating nature of the institutional arrangements of the common currency. After taking a hard look at the mechanisms regulating the relationship between the new monetary body (the ECB) and fiscal authorities (the national governments), they concluded that a single narrow liquidity crisis would evolve into a sequence of wildfires, engulfing banking systems and the weakest sovereign debts.

It seems we are now in the midst of the real thing…


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