Review: The Euro

The Euro: the Beginning, the Middle … and the End? is a new publication (edited by Philip Booth) of the Institute of Economic Affairs, 2 Lord North Street, Westminster, London SW1P, 3LB, England.

Patrick Minford shows that Britain’s non-entry into the Euro was a triumph of economics over politics. Tony Blair was anxious to join the Euro as a political statement of European union, but Gordon Brown insisted that economic tests be meet, and Britain did not join the Euro. But, other countries had rushed headlong into Euro membership as a a symbol of their adherence to the European Union. Now these countries are faced with choices regarding remaining in or leaving the Euro. The growth of Euroskeptic parties could mean that the fiscally conservative parties will lose voters and be succeeded by parties more focused on the political purposes of the Euro than its economics.

John Chown presents “Lessons from monetary history.” “Saving monetary union? A market solution for the orderly suspension of Greece” by Pedro Schwartz with Francisco Cabrillo and Juan E. Castaneda suggests an alternative to the current direction.

Kevin Dowd offers “Back to the future: a free banking solution for the euro zone.”