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A tragédia do Euro
Which stance it should adopt: the classical liberal vision, or the socialist
vision of Europe? The introduction of the Euro has played a key role in the ...
vision of Europe? The introduction of the Euro has played a key role in the ...
232 pages, Paperback
First published January 1, 2010
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Displaying 1 - 29 of 29 reviews
August 2, 2015
Philipp Bagus is quickly becoming one of my favorite economic theorists. Fantastic book by such a young scholar. I look forward to years of his contribution to the Austrian economic literature.
As for the book itself, it was educational. He took Austrian theory of money and banking and applied it to the ECB in similar fashion to how Rothbard had done over the years with the Fed. He mixed the politics with the economics in a very readable way, while making sure to cover the economic theory behind the real world events. Of special note to those well read in modern Austro-libertarian works, was his comparison between the Fed and the ECB.
I recommend it.
As for the book itself, it was educational. He took Austrian theory of money and banking and applied it to the ECB in similar fashion to how Rothbard had done over the years with the Fed. He mixed the politics with the economics in a very readable way, while making sure to cover the economic theory behind the real world events. Of special note to those well read in modern Austro-libertarian works, was his comparison between the Fed and the ECB.
I recommend it.
December 14, 2016
The Tragedy of the Euro is a decent starting point to learn about the New Soviet Union, but it suffers from typical German economic victimism. I'd recommend The Rotten Heart of Europe instead, a book that Bagus often mentions, and that offers a non-continental view of the dirty war for Europe's money. A war without German heroes, as much as Bagus might dislike this fact.
October 21, 2011
If you are up to now hazy about the implications of the Euro, this will surely give you a clear perspective. Phillip Bagus shows through the history of Europe in the last half-century, a single currency evolved through conflict, not unity. He explains the economic mechanisms behind a currency structured to fail almost like a tragedy of the commons.
Bagus tells the story along the following lines: With the Treaty of Rome, the EEC was formed in a classical liberal mindset, but a socialist opposition has existed that has wanted to turn Europe into a superstate and centralise power. Obstacles to socialists' ideal led to the proposition of the Euro as a economic vehicle to achieve their goal. Having a single currency despite widely different national economic policies encourages the smaller countries to inflate the money supply to finance their own (unsustainable) spending (herein lies the main similarity to a tragedy of the commons). The inevitable sovereign debt crisis can then be used to centralise fiscal policy and power. Means put in place to restrain the system (such as the regulations and penalties in the Stability and Growth Pact) have not been adhered to.
It was never in the wider German nation's interests to join the Euro, as the Bundesbank maintained the mark as relatively one of the least inflationary currencies (the population was extremely sensitive to inflation). Bagus pins the blame on Germany entering the currency on pressure from French socialists, most notably Delors and Mitterand. The banking crisis escalated the sovereign debt problem in the financially weaker states (Portugal, Italy, Ireland, Greece, Spain) as these countries resorted to deficit spending to sit out the recession. In an attempt to prop up their economies, the European Central Bank systematically loosened its financial policies, buying government bonds directly (rather than accepting them as collateral for loans), and accepting Greek bonds even at junk status. It now remains to be seen how much more patience the richer countries - most notably Germany - have left for covering the deficits of the less financially prudent.
This is just a brief summary. Bagus has done extensive research into the history of all parts of the story of the Euro, especially the politics of the past few years. He gives a good framework for understanding this with selective explanations of relevant economic and financial topics, such as the effect of inflation in a multi-country, single currency system, and the mechanics of the ECB's financial operations (bond-buying etc).
The Tragedy of the Euro is only a short book (172 pages, also available as a free eBook), but it's rich and enlightening. Some bits were a bit dense for my liking, as the narrative follows every twist and turn of some meetings, but the faster paced bits made up for that. If you're an academic this is no doubt ideal; if you're a layman to the subject (I count myself here) I suspect you'll need a strong interest in the subject of the Euro to get the most out of this. I did have a strong interest in this subject, and thoroughly enjoyed the book.
Bagus tells the story along the following lines: With the Treaty of Rome, the EEC was formed in a classical liberal mindset, but a socialist opposition has existed that has wanted to turn Europe into a superstate and centralise power. Obstacles to socialists' ideal led to the proposition of the Euro as a economic vehicle to achieve their goal. Having a single currency despite widely different national economic policies encourages the smaller countries to inflate the money supply to finance their own (unsustainable) spending (herein lies the main similarity to a tragedy of the commons). The inevitable sovereign debt crisis can then be used to centralise fiscal policy and power. Means put in place to restrain the system (such as the regulations and penalties in the Stability and Growth Pact) have not been adhered to.
It was never in the wider German nation's interests to join the Euro, as the Bundesbank maintained the mark as relatively one of the least inflationary currencies (the population was extremely sensitive to inflation). Bagus pins the blame on Germany entering the currency on pressure from French socialists, most notably Delors and Mitterand. The banking crisis escalated the sovereign debt problem in the financially weaker states (Portugal, Italy, Ireland, Greece, Spain) as these countries resorted to deficit spending to sit out the recession. In an attempt to prop up their economies, the European Central Bank systematically loosened its financial policies, buying government bonds directly (rather than accepting them as collateral for loans), and accepting Greek bonds even at junk status. It now remains to be seen how much more patience the richer countries - most notably Germany - have left for covering the deficits of the less financially prudent.
This is just a brief summary. Bagus has done extensive research into the history of all parts of the story of the Euro, especially the politics of the past few years. He gives a good framework for understanding this with selective explanations of relevant economic and financial topics, such as the effect of inflation in a multi-country, single currency system, and the mechanics of the ECB's financial operations (bond-buying etc).
The Tragedy of the Euro is only a short book (172 pages, also available as a free eBook), but it's rich and enlightening. Some bits were a bit dense for my liking, as the narrative follows every twist and turn of some meetings, but the faster paced bits made up for that. If you're an academic this is no doubt ideal; if you're a layman to the subject (I count myself here) I suspect you'll need a strong interest in the subject of the Euro to get the most out of this. I did have a strong interest in this subject, and thoroughly enjoyed the book.
July 9, 2015
It is a very good book written by the German economist, with explain a lot of different issues related to the euro. The author presents us with the creation of the Euro conflicts between the socialist camp and the classical-liberal, conflicts between the German central bank and the rest of western Europe and the conflict between France and Germany. In addition, the author addresses the issue of creation of money without coverage by the ECB (European Central Bank) and the related with it debt of southern countries. It also describes the mechanisms associated with "hidden" redistribution of money in the euro zone. At the end of his work the author puts his predictions about what will happen and explains what should happen. I recommend the book to anyone who wants to know what it is going on in euro zone.
//polish
Jest to bardzo dobra książka niemieckiego ekonomisty wyjaśniająca wiele różnych spraw związanych z euro. Autor przedstawia nam konflikty przy tworzeniu Euro między obozem socjalistycznym a klasyczno-liberalnym, konflikty między niemieckim bankiem centralnym a resztą europy zachodniej oraz konflikt Francja-Niemcy. Oprócz tego autor porusza kwestię tworzenia pieniądza bez pokrycia przez EBC(Europejski Bank Centralny) oraz związane z nim zadłużenie państw południa. Opisuje także mechanizmy związane z "ukrytą" redystrybucją pieniędzy w strefie euro. Pod koniec swojego dzieła autor stawia swoje przewidywania odnośnie tego, co się stanie oraz wyjaśnia co powinno się stać. Książkę polecam każdemu, kto chciałby wiedzieć o co chodzi tak na prawdę ze strefą euro.
//polish
Jest to bardzo dobra książka niemieckiego ekonomisty wyjaśniająca wiele różnych spraw związanych z euro. Autor przedstawia nam konflikty przy tworzeniu Euro między obozem socjalistycznym a klasyczno-liberalnym, konflikty między niemieckim bankiem centralnym a resztą europy zachodniej oraz konflikt Francja-Niemcy. Oprócz tego autor porusza kwestię tworzenia pieniądza bez pokrycia przez EBC(Europejski Bank Centralny) oraz związane z nim zadłużenie państw południa. Opisuje także mechanizmy związane z "ukrytą" redystrybucją pieniędzy w strefie euro. Pod koniec swojego dzieła autor stawia swoje przewidywania odnośnie tego, co się stanie oraz wyjaśnia co powinno się stać. Książkę polecam każdemu, kto chciałby wiedzieć o co chodzi tak na prawdę ze strefą euro.
March 9, 2012
While "captivating" is not the word I would use to describe the writing style, the content of the book is definitely something Europeans should know more about. It paints a clear, grim history of the Euro, starting from Germany's World War I reparations and the destructive farming subsidies, that have been there basically from World War II.
At times it the amount of bashing the French and praising the Germans starts to make you doubt whether it can all actually be that black and white. The clash between socialism and classical liberalism is another recurring subject.
All in all the subject is very timely and it's nearly guaranteed to make you sick to read how the earnings of comparatively prudent Northern Europeans are used to pay for the corruption and the exorbitant salaries of the huge hordes of Southern public administrators.
At times it the amount of bashing the French and praising the Germans starts to make you doubt whether it can all actually be that black and white. The clash between socialism and classical liberalism is another recurring subject.
All in all the subject is very timely and it's nearly guaranteed to make you sick to read how the earnings of comparatively prudent Northern Europeans are used to pay for the corruption and the exorbitant salaries of the huge hordes of Southern public administrators.
July 28, 2015
I used to train foreign exchange dealers with a simlulation, and before the introduction of the Euro, used a scenario in which Italy would have left the Euro in 2013, causing a break-up. As an ex-forex dealer, I could see that it was not going to work, because unless you have fiscal transfers, which infers political union (as in the USA), it cannot work. So we have fudged the system to allow transfers, but still no political union. The latest Greek bailout just kicks an ever bigger can down the road. Soon, the can will be too big to kick, then the whole fiat money system will collapse, worldwide. IMHO, the financial system should be based on energy (with the Kwh as the unit) , without fractional reserve banking.
June 6, 2013
eye-opener, definitely worth reading
June 13, 2013
A MUST READ for all those interested in the euro crisis or its history
December 12, 2019
Libro de corte liberal y euroescéptico en el que se explican:
-Los motivos que llevaron a la implantación del euro :
Oficialmente: el euro no se planteó como un proyecto rentable en términos económicos, sino que tenía que ser un paso radical para forzar la integración política de Europa en un estado federal.
Extraoficialmente (la parte menos verosímil): la voluntad de Francia de crear una Europa políticamente centralizada en la que ganase influencia en el ámbito económico (a través del control de las instituciones europeas como el BCE) frente a la potencia alemana. En teoría Alemania se ve forzada a aceptar el euro como precio a pagar por que se permita su reunificación.
-Por qué el euro ha beneficiado hasta la crisis del 2007 a los países mediterráneos (capitaneados por Francia) frente a los países del norte (representados por Alemania): básicamente la unión monetaria ha permitido que los estados del sur hayan podido tener un gasto público ilimitado y “vivir por encima de sus posibilidades” gracias a la posibilidad de financiar deuda pública de manera irresponsable (y seguir generando déficits insostenibles) costeada o avalada por el BCE a través de la financiación de la banca ordinaria. El quid de la cuestión reside en que el euro ha permitido a los países del sur socializar los costes de su endeudamiento a otros países más responsables, puesto que en última instancia la deuda se cubría con la creación de masa monetaria por el BCE, haciendo aumentar el nivel de precios y, en consecuencia, reduciendo el poder adquisitivo de los ciudadanos de países no responsables (como Alemania u Holanda) que no habían participado en la generación de esos déficits. El euro ha tenido un efecto redistributivo de la riqueza de los países del norte a los del sur a base de permitirles aumentar el gasto público de una manera que manteniendo la moneda nacional no hubieran podido permitirse.
-Por qué el euro ha sido uno de los motivos fundamentales que desencadenó la crisis del 2007: Sin el euro los países como España no podrían haber alcanzado semejantes déficits (nadie se los hubiera financiado) ni sus bancos y consumidores haber dispuesto de acceso al crédito tan barato, que fue un elemento crucial en el desarrollo de la burbuja inmobiliaria. Similar a España se produjo la burbuja financiera en Irlanda o la burbuja del gasto público en Grecia.
CP: el libro señala a Alemania como la gran víctima del euro pero obvia o a penas señala que la moneda única le ha permitido unas exportaciones anormalmente altas gracias a la competitividad de una divisa más barata de lo que hubiera sido el marco. Por otro lado, intuyo que la transferencia de renta desde a Alemania hacia los demás países necesariamente habrá redundado en beneficio de su industria (y en perjuicio de las industrias de los estados del sur). Es especular, pero creo que el euro ha fomentado la integración económica en base a cierta especialización de los diversos países de Europa por sectores económicos (y en la que Alemania ha salido beneficiada).
Por otro lado, algunos problemas generados por el euro podrían haberse solucionado de haber existido una regulación más exhaustiva y de haber sido realmente eficaces la herramientas coactivas de la UE (p.ej: sanciones por exceso de déficit). Ocurre lo mismo que con el estado autonómico español, existe una divergencia de intereses irreconciliables entre el estado europeo y los nacionales, los cuales tienen margen para actuar en beneficio propio a corto plazo y en perjuicio de la Unión, quien asume parte de sus errores (rescates a Grecia e Irlanda).
-Los motivos que llevaron a la implantación del euro :
Oficialmente: el euro no se planteó como un proyecto rentable en términos económicos, sino que tenía que ser un paso radical para forzar la integración política de Europa en un estado federal.
Extraoficialmente (la parte menos verosímil): la voluntad de Francia de crear una Europa políticamente centralizada en la que ganase influencia en el ámbito económico (a través del control de las instituciones europeas como el BCE) frente a la potencia alemana. En teoría Alemania se ve forzada a aceptar el euro como precio a pagar por que se permita su reunificación.
-Por qué el euro ha beneficiado hasta la crisis del 2007 a los países mediterráneos (capitaneados por Francia) frente a los países del norte (representados por Alemania): básicamente la unión monetaria ha permitido que los estados del sur hayan podido tener un gasto público ilimitado y “vivir por encima de sus posibilidades” gracias a la posibilidad de financiar deuda pública de manera irresponsable (y seguir generando déficits insostenibles) costeada o avalada por el BCE a través de la financiación de la banca ordinaria. El quid de la cuestión reside en que el euro ha permitido a los países del sur socializar los costes de su endeudamiento a otros países más responsables, puesto que en última instancia la deuda se cubría con la creación de masa monetaria por el BCE, haciendo aumentar el nivel de precios y, en consecuencia, reduciendo el poder adquisitivo de los ciudadanos de países no responsables (como Alemania u Holanda) que no habían participado en la generación de esos déficits. El euro ha tenido un efecto redistributivo de la riqueza de los países del norte a los del sur a base de permitirles aumentar el gasto público de una manera que manteniendo la moneda nacional no hubieran podido permitirse.
-Por qué el euro ha sido uno de los motivos fundamentales que desencadenó la crisis del 2007: Sin el euro los países como España no podrían haber alcanzado semejantes déficits (nadie se los hubiera financiado) ni sus bancos y consumidores haber dispuesto de acceso al crédito tan barato, que fue un elemento crucial en el desarrollo de la burbuja inmobiliaria. Similar a España se produjo la burbuja financiera en Irlanda o la burbuja del gasto público en Grecia.
CP: el libro señala a Alemania como la gran víctima del euro pero obvia o a penas señala que la moneda única le ha permitido unas exportaciones anormalmente altas gracias a la competitividad de una divisa más barata de lo que hubiera sido el marco. Por otro lado, intuyo que la transferencia de renta desde a Alemania hacia los demás países necesariamente habrá redundado en beneficio de su industria (y en perjuicio de las industrias de los estados del sur). Es especular, pero creo que el euro ha fomentado la integración económica en base a cierta especialización de los diversos países de Europa por sectores económicos (y en la que Alemania ha salido beneficiada).
Por otro lado, algunos problemas generados por el euro podrían haberse solucionado de haber existido una regulación más exhaustiva y de haber sido realmente eficaces la herramientas coactivas de la UE (p.ej: sanciones por exceso de déficit). Ocurre lo mismo que con el estado autonómico español, existe una divergencia de intereses irreconciliables entre el estado europeo y los nacionales, los cuales tienen margen para actuar en beneficio propio a corto plazo y en perjuicio de la Unión, quien asume parte de sus errores (rescates a Grecia e Irlanda).
February 25, 2019
Great history of Euro from Austrian perspective
This book was a pleasure to read and felt geared towards me as a casual economics reader who doesn’t know more than the basics about the history of the Euro.
The first half of the book is a fascinating story of the power politics and history of how Europe shifted from the gold standard to national currencies and then to a centralized common Euro currency. In fact, this part was so interesting I wish the author would have gone into even greater detail! I especially like how the author shows in plain language how the Euro was born of the socialist vision of centralizing power and incorporating redistribution of wealth within the EMU. Also, as a North American reader not used to European internal politics, it is eye opening to see how the WWII guilt card still gets used against Germany to push them to agree to policies against their national interest.
The second half of the book focuses mainly on the 2008 crisis, the greek bailout and the impact on the Euro. This got a little dry at times as it could feel like a recitation of newspaper headlines with somewhat repetitive analysis. But ultimately, the author makes his more detailed points of how the more fiscally disciplined north effectively subsidizes the deficits of the south. The author also did a great job showing the negative effects to the southern countries (eg inefficient labour) which could be easier to miss when studying the issue. It also showed how the initial standards of ECB were eventually weakened as the crisis advanced.
One last minor critique is that the author follows the more Rothbardian, JHDS line of thinking on fractional reserve banking. That is, it sees anything less than 100% reserve ratio banking as a fraud and economically negative. In this way, I felt the author’s analysis incomplete as it largely mis-characterizes and underreports the significance of the history and evolution of the european private banking system and regulations. By contrast, I found George Selgin and Lawrence White’s books a better model in this regard and a more complete history of currency evolution, although this is more in the US, and UK context.
Overall, I’d recommend to anyone with a basic understanding of money and banking who wants a great intro to the Euro context from a more free market/Austrian point of view.
This book was a pleasure to read and felt geared towards me as a casual economics reader who doesn’t know more than the basics about the history of the Euro.
The first half of the book is a fascinating story of the power politics and history of how Europe shifted from the gold standard to national currencies and then to a centralized common Euro currency. In fact, this part was so interesting I wish the author would have gone into even greater detail! I especially like how the author shows in plain language how the Euro was born of the socialist vision of centralizing power and incorporating redistribution of wealth within the EMU. Also, as a North American reader not used to European internal politics, it is eye opening to see how the WWII guilt card still gets used against Germany to push them to agree to policies against their national interest.
The second half of the book focuses mainly on the 2008 crisis, the greek bailout and the impact on the Euro. This got a little dry at times as it could feel like a recitation of newspaper headlines with somewhat repetitive analysis. But ultimately, the author makes his more detailed points of how the more fiscally disciplined north effectively subsidizes the deficits of the south. The author also did a great job showing the negative effects to the southern countries (eg inefficient labour) which could be easier to miss when studying the issue. It also showed how the initial standards of ECB were eventually weakened as the crisis advanced.
One last minor critique is that the author follows the more Rothbardian, JHDS line of thinking on fractional reserve banking. That is, it sees anything less than 100% reserve ratio banking as a fraud and economically negative. In this way, I felt the author’s analysis incomplete as it largely mis-characterizes and underreports the significance of the history and evolution of the european private banking system and regulations. By contrast, I found George Selgin and Lawrence White’s books a better model in this regard and a more complete history of currency evolution, although this is more in the US, and UK context.
Overall, I’d recommend to anyone with a basic understanding of money and banking who wants a great intro to the Euro context from a more free market/Austrian point of view.
October 14, 2024
A eurosceptic's narrative on Euro
I had a hunch what I was about to getting into when I saw "Ludwig von Mises Institute" on the cover page of the book. After reading it, I felt vindicated. The whole book is an Austrian school-centric monologue on history of EMU and the dissection of euro crisis: First, the well accepted supranational vs. intergovernmental visions of EU are interpreted in a drastically different fashion through Austrian ideology of socialism vs. liberalism. Furthermore, the author shows strong Austrian-style contempt on fiat money and institutions that print it, including ECB, as well as modern fractional-reserve banks. The flip side of that contempt is the nostalgia for "good-old" gold standard.
Biased and misleading opinions are everywhere in this book. Cost benefit analysis of Euro becomes cost-only analysis for northern Germanic countries and benefit-only analysis for southern Latin countries. Germany did sacrifice D-Mark for French support of reunification. But depicting it as the solo reason of Germany giving up D-Mark is misleading. Misleading or not, the author clearly wins favors from his fellow eurosceptics in Germany with those conspiracy theories.
On top of all shortcomings, the book failed miserably in the examination of the euro crisis. The doctrinated explanation -- again, through Austrian school framework -- of banks failure, sovereign default risk of periphery countries doesn't provide much valuable insights on either the causes or solutions to the euro crisis.
Part of the information in the book is also outdated, especially regarding the differences between Fed and ECB. Much has changed since the great recession. Thus, it requires extra reading to understand current monetary policy implementation of Fed and ECB.
If only I could get my time and money back...
I had a hunch what I was about to getting into when I saw "Ludwig von Mises Institute" on the cover page of the book. After reading it, I felt vindicated. The whole book is an Austrian school-centric monologue on history of EMU and the dissection of euro crisis: First, the well accepted supranational vs. intergovernmental visions of EU are interpreted in a drastically different fashion through Austrian ideology of socialism vs. liberalism. Furthermore, the author shows strong Austrian-style contempt on fiat money and institutions that print it, including ECB, as well as modern fractional-reserve banks. The flip side of that contempt is the nostalgia for "good-old" gold standard.
Biased and misleading opinions are everywhere in this book. Cost benefit analysis of Euro becomes cost-only analysis for northern Germanic countries and benefit-only analysis for southern Latin countries. Germany did sacrifice D-Mark for French support of reunification. But depicting it as the solo reason of Germany giving up D-Mark is misleading. Misleading or not, the author clearly wins favors from his fellow eurosceptics in Germany with those conspiracy theories.
On top of all shortcomings, the book failed miserably in the examination of the euro crisis. The doctrinated explanation -- again, through Austrian school framework -- of banks failure, sovereign default risk of periphery countries doesn't provide much valuable insights on either the causes or solutions to the euro crisis.
Part of the information in the book is also outdated, especially regarding the differences between Fed and ECB. Much has changed since the great recession. Thus, it requires extra reading to understand current monetary policy implementation of Fed and ECB.
If only I could get my time and money back...
March 11, 2024
In European (mainstream) media the Euro most often av written (talked) about as a success. In reality the Euro has been in more or less a permanent crisis, distorting the economy within the European Monetary Union. Germany has lost out and the unreliable governments in Southern Europe, basing their monetary policies on inflation (hidden taxation + advantages for 'first buyers'). It has led to massive dept and redistribution of wealth from serious, low inflationary governments in Northern Europe (like Germany, The Netherlands and Denmark) to the latin countries and Greece, known for high inflationary and unreliable monetary policies. This has caused continuing crises and a state of affairs not unlike 'the tragedy of the commons', described by Garett Hardin in his famous 1968 paper. Enlightening and thoroughly researched, I recommend the book for those who want to know more about the politics behind the Euro and EMU and its quite horrible consequences.
February 25, 2022
Austrian school of economics view on the European common currency. It's focuses on money supply changes as a result of EBC and governments interventions in 2008 and their consequences. The whole is complemented by the political context. Unfortunately, there is no broader time perspective, because the book was published in 2010. Most of remarks have an universal character, but it's difficult to say whether some points could be different today. Therefore, I think that Euro analysies shouldn't based only on this publication.
December 23, 2020
Ótimo livro, simples, direto, muito fácil de ler, não cansa, conceitos explicados de forma clara, é excelente para quem está começando, explica bem conceitos como a Teoria Austríaca do Ciclo Econômico e sua aplicação ao caso da União Monetária Europeia.
June 21, 2022
The book is great. But quite hard for understanding by usual trader who doesn't have economic degree.
December 1, 2013
À luz da actual crise económica que assola a Europa, em particular os países do sul - que pejorativamente são designados pela acrónimo PIIGS (Portugal, Irlanda, Itália, Grécia e Espanha) - este é um livro que se revela de grande interesse e de leitura, na minha opinião, quase imperativa.
O livro é bastante abrangente, fazendo um enquadramento histórico que antecedeu o Euro, passando pelo conceito de moeda fiduciária e terminando no percurso que levou à actual situação, capítulo que o autor intitulou "A Cavalgada para o Colapso" (o livro foi escrito antes do pedido de apoio financeiro por parte de Portugal, mas já são mostrados vários indícios sobre o caso português e espanhol).
Entendo, no entanto, que existe alguma visão germânica neste livro, à mistura com uma leitura política mais à direita, mas este tipo de análise é impossível de separar de temas económicos, em que política e economia andam de mãos dadas.
Mesmo assim, um livro a ler.
O livro é bastante abrangente, fazendo um enquadramento histórico que antecedeu o Euro, passando pelo conceito de moeda fiduciária e terminando no percurso que levou à actual situação, capítulo que o autor intitulou "A Cavalgada para o Colapso" (o livro foi escrito antes do pedido de apoio financeiro por parte de Portugal, mas já são mostrados vários indícios sobre o caso português e espanhol).
Entendo, no entanto, que existe alguma visão germânica neste livro, à mistura com uma leitura política mais à direita, mas este tipo de análise é impossível de separar de temas económicos, em que política e economia andam de mãos dadas.
Mesmo assim, um livro a ler.
June 26, 2016
No geral é uma leitura positiva, especialmente para quem estiver ainda muito preso à narrativa do costume da Alemanha má e da união política europeia como única alternativa para um futuro sustentável.
Pontos que quero destacar:
- Excelente narrativa histórica sobre o contexto da criação da UE e do Euro;
- Tratamento talvez um pouco superficial das reservas fracionárias, apesar de introduzir o tema decentemente ao público não especializado na matéria;
- Boa discussão dos mecanismos de intervenção do BCE e da sua evolução e pressões políticas, apesar de eu ter comprado o livro com a esperança agora desfeita de encontrar um comentário ao sistema TARGET2;
- Tradução podia ser mais feliz.
Em resumo, recomendo bastante ao público em geral.
Pontos que quero destacar:
- Excelente narrativa histórica sobre o contexto da criação da UE e do Euro;
- Tratamento talvez um pouco superficial das reservas fracionárias, apesar de introduzir o tema decentemente ao público não especializado na matéria;
- Boa discussão dos mecanismos de intervenção do BCE e da sua evolução e pressões políticas, apesar de eu ter comprado o livro com a esperança agora desfeita de encontrar um comentário ao sistema TARGET2;
- Tradução podia ser mais feliz.
Em resumo, recomendo bastante ao público em geral.
March 23, 2012
This short book helped me revise my views on the euro, which I had thought of as being at least not a terribly bad thing before reading this book. Bagus clearly shows that the EMU is set up in such a way that profligate countries like Greece have every incentive to spend money freely in the sure knowledge that the taxpayers in the more conservative states will have to bail them out, as we have seen over the past year. Bagus also demonstrates how the EMU effectively turns the EU into a massive wealth transfer scheme to channel money from the wealthier counties of northern Europe to the poorer countries of southern Europe.
August 9, 2011
This is a great guide to use to track future events in the eurozone. The euro and the state institutions created to produce and administer it have so far proven themselves as a mechanism to export inflation, uncompetitiveness, and the profligacy of some national governments, onto the comparatively stronger economies of healthier nations (namely Germany).
The institutions themselves create incentive structures which work against the euro as a strong and stable currency. It's an unstable union, evidently by design, and it is destined to break up one way or another.
The institutions themselves create incentive structures which work against the euro as a strong and stable currency. It's an unstable union, evidently by design, and it is destined to break up one way or another.
August 7, 2011
This book explains how the Euro and European Central Bank, through European governments' ability to just print government bonds, is acting as a big transfer of wealth from fiscally conservative countries (such as Germany) to fiscally unsound countries (such as Greece). It is like what would happen if 14 people had printing presses and each one could print money and spend it. The person who could print money fastest would be the person who accumulated wealth by essentially stealing it from the others.
May 23, 2012
Short overview of the history of the EU, the EMU and the Euro up to the first half of 2011. It's written as a basic entrance to the subject and shows the biggest inherent flaws of the whole system whilst pointing out who are the people to profit and who are the people to suffer from it
You have to keep in mind that the book was published by the Mises Institute and Philipp Bagus is a strong adherent to austrian school of economics, so the subject is from an economic liberalist point of view.
You have to keep in mind that the book was published by the Mises Institute and Philipp Bagus is a strong adherent to austrian school of economics, so the subject is from an economic liberalist point of view.
October 22, 2016
A very good Austrian Economics book that deals with the worckings of the Euro, the ECB, the EU and the soveraign debt crises from the EU.
The author dose not hold Germany as the right way to do bancking, Germany also uses the printing press. But the Germans are more prudent with it then the Latin countries.
Butt I still see as all of them equaly to blame !! German banks were happily giving Greece, Spain etc cheap loans despite the fact that they should have known better !!
The author dose not hold Germany as the right way to do bancking, Germany also uses the printing press. But the Germans are more prudent with it then the Latin countries.
Butt I still see as all of them equaly to blame !! German banks were happily giving Greece, Spain etc cheap loans despite the fact that they should have known better !!
This entire review has been hidden because of spoilers.
August 5, 2011
Mata uang bersama Euro ialah proyek sosialisme Prancis, bukan proyek 'liberal' yang seringkali dipersepsikan orang. Disini Philipp Bagus menganalis sejarah gagasan Euro, ketegangan Prancis vs Jerman dalam merebutkan dominasinya, serta-serta implikasi-implikasi yang tidak menyenangkan dari penerapan sistem mata uang tunggal Eropa.
February 3, 2015
Exposes the Euro for what it really is, a way for the lazy nations in Europe to live off of the harder working countries.
Bagus does an excellent job dispelling the disgusting myth that somehow it is Germany's fault that countries, like Greece, are caving in. The reality is, if they weren't in the Euro zone, they would have collapsed much sooner.
Bagus does an excellent job dispelling the disgusting myth that somehow it is Germany's fault that countries, like Greece, are caving in. The reality is, if they weren't in the Euro zone, they would have collapsed much sooner.
September 7, 2016
A coruscating analysis of the political objectives behind the establishment and development of the Euro. A pathway towards power and control in the hands of unelected technocrats, with dire consequences for outputs, international harmony, and democracy. Compelling, but academic, so primarily for economists!
Want to read
March 3, 2018Excellent work describing the history of the EU, the Euro economic system, and the European currency. Bagus explains the internal contradictions of the Euro currency and economic system and makes good observations regarding the future unsustainability of the Euro as a currency union.
June 16, 2015
Accomplishes its purposes, but if you are looking for a theoretical analysis of central banking look elsewhere. The book mostly deals with the historical facts that have led to todays situation
May 2, 2017
An explanation of the political origin of the EMU and the Euro. Author's analysis seems to bias towards the responsible German state vs. the irresponsible Mediterranean states (Spain, Portugal, France, and Greece).
Euro is a French idea in an effort to gain more political control of the continent and to suppress the German economic supremacy. Germans agreed to the terms as part of the implicit cost to reunite eastern and western Germany. The Euro system enables Mediterranean countries to spend beyond its means and maintain a high quality of life through deficit spending, which is subsidized by surplus countries such as Germany. This accumulated deficit spending without enforced consequence eventually led to the European sovereign crisis of 2010.
Bagus predictions: 1) EMU will break up; 2) Surplus countries or deficit countries will leave the EU; 3) Austerity to deficit countries.
Euro is a French idea in an effort to gain more political control of the continent and to suppress the German economic supremacy. Germans agreed to the terms as part of the implicit cost to reunite eastern and western Germany. The Euro system enables Mediterranean countries to spend beyond its means and maintain a high quality of life through deficit spending, which is subsidized by surplus countries such as Germany. This accumulated deficit spending without enforced consequence eventually led to the European sovereign crisis of 2010.
Bagus predictions: 1) EMU will break up; 2) Surplus countries or deficit countries will leave the EU; 3) Austerity to deficit countries.
August 17, 2018
A captivating read, though I’d supplement it with Stigliz’s take on the EU and modern monetary theory to have a thorough understanding of the internal dynamics of the EU.
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