The fundamental problem within the European Monetary Union is that member-countries have different preferences with regard to growth, employment and inflation. EMU cannot proceed on its current course: Alternatives are possible possible.
Neoliberalism aims to diminish the role of the state and enhance the power of the market, and this goal is reflected in neoliberal monetary theory which guided the euro’s design.
It is not just that wages and salaries have grown vastly more unequal. Policy decisions have greatly reduced the equalizing effect of taxes and transfers.
Dean Baker and Mark Weisbrot, Co-Directors of Center for Economic and Policy Research - CEPR, welcome Fed’s intervention in European markets, but say it is not enough.
