The euro at ten: the next global currency?
by Jean Pisani-Ferry, Adam Posen on 14 June 2009
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Category: BOOKS
Topics: Currencies and International finance, European and global governance
Over the first ten years of its existence, the euro has proved to be more than a powerful symbol of collective identity. It has provided price stability to previously inflation-prone countries; it has offered a shelter against currency crises; and it has by and large been conducive to budgetary discipline. The eurozone has attracted five new members in addition to the initial eleven, and many countries in Europe wish to adopt it. The euro has also been successful internationally. Even though research presented in this volume confirms that it has not rivaled the dollar's world currency status, it has certainly become a strong regional currency in Europe and the Mediterranean region. Some countries in the region have de facto adopted it, several peg to it, and many have become at least partially euroized.
However, the euro's impressive first decade is likely to be followed by a much more difficult period. The present financial crisis is posing at least two important challenges: real economic adjustment within the euro area and maintenance of fiscal and financial stability without a central government authority capable of taking appropriate financial and fiscal decisions in difficult times.
This book is the product of a joint conference held in 2008 by the Peterson Institute for International Economics and Bruegel. It is edited by Bruegel Director Jean Pisani-Ferry and then-PIEE Deputy Director and current Bruegel board member Adam Posen. The papers and remarks in this volume demonstrate that the euro has proved to be attractive as a fair weather currency for countries and investors well beyond its borders. But it remains to be seen whether it is equipped to also succeed as a stormy weather currency.
Contributors: Joaquín Almunia, Maria Celina Arraes, Leszek Balcerowicz, C. Fred Bergsten, Lorenzo Bini Smaghi, Kristin J. Forbes, Linda S. Goldberg, C. Randall Henning, Mohsin S. Khan, Antonio de Lecea, Erkki Liikanen, Philippe Martin, Thomas Mayer, André Sapir, Dominique Strauss-Kahn, Lawrence H. Summers, and György Szapáry.
For more information on the events related to the book launch, please consult our Research page.
Handle with care! Post-crisis growth in the EU
by Jean Pisani-Ferry, Bruno van Pottelsberghe on 15 April 2009
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Category: POLICY BRIEFS
Topics: European and global governance, Trade, investment and competitiveness
In this policy brief, Jean Pisani-Ferry and Bruno van Pottelsberghe show that although the crisis originated in the US, Europe‘s outlook has deteriorated faster and more sharply leading to the worst crisis observed during the post-war era. However, the length of the crisis matters at least as much at its depth, and policymakers should not overlook the medium term consequences of their actions.
Reshaping the global economy
by Jean Pisani-Ferry, Indhira Santos on 31 March 2009
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Category: POLICY CONTRIBUTIONS
Topics: Emerging economies and development, European and global governance
Jean Pisani-Ferry and Indhira Santos observe that the crisis and the national responses to it have started to reshape the global economy. But beyond the specifics of shock transmission, the crisis has also exposed that, in spite of regional integration and the emergence of new economic powers, the global economy lacks resilience. The authors explain how they believe the international community could build a stronger and more legitimate globalised governance out of the crisis.
International governance- is the G20 the right forum?
by Jean Pisani-Ferry on 30 March 2009
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Category: POLICY CONTRIBUTIONS
Topics: Emerging economies and development, European and global governance
Jean Pisani-Ferry puts forward the idea that the G20 is a significantly less suitable forum for discussion of regulatory matters than of macroeconomic issues and their implications for the institutions of global governance. While it is sensible to involve developing and emerging countries in the reform of financial regulation, they are unlikely to play a leading role. On macroeconomic matters and as regards institutional reform, however, no meaningful discussion can take place without them.
Weathering the storm- Fair weather versus stormy-weather governance in the euro area
by Jean Pisani-Ferry, André Sapir on 18 March 2009
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Category: POLICY CONTRIBUTIONS
Topics: Budgetary and monetary policies, Emerging economies and development, European and global governance
Jean Pisani-Ferry and André Sapir believe that the euro has proved attractive as a fair-weather currency for countries and investors well beyond its borders. But it still remains to be seen if its governance is strong enough for it to succeed as a stormy-weather currency. The authors already detect, howevever, that the crisis shows the euro-area governance system lacks some crucial properties: speed of reaction, policy discretion and centralised decision-making.