Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Monetary union and current account imbalances

Monetary union and current account imbalances

Adamou Louché, Ibrahim

Paperback

Business General

ISBN10: 6209480543
ISBN13: 9786209480546
Publisher: Our Knowledge Publishing
Published: Jan 16 2026
Pages: 80
Weight: 0.26
Height: 0.19 Width: 6.00 Depth: 9.00
Language: English
Current account imbalances can indeed exist and be compatible with monetary union when they are good. However, harmful imbalances lead to distortions in the allocation of resources, and their persistence in economies that are catching up makes them more vulnerable to asymmetric shocks. The onset of the crisis also revealed the limitations of an incomplete monetary union, which further complicated crisis management in the eurozone. The Treaty on Stability, Cooperation and Governance (TSCG), which most (if not all) eurozone countries have signed and ratified, represents an unprecedented sharing of fiscal sovereignty among member states. If we add to this treaty the European Support Fund, which can mobilize nearly 1 trillion, the banking union project, and the ECB's new pragmatic attitude, the eurozone and, consequently, Europe now have a toolbox that seems to have convinced the markets in recent months that the single currency is in the EU's best interest and, therefore, its symbol. But when will fiscal federalism come into play?

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