Golden Rules for the Eurozone

by Harold James Harold James is Professor of History and International Affairs at Princeton Universityand Professor of History at the European University Institute, Florence. He isthe author of The Creation andDestruction of Value: The Globalization Cycle. 04.04.2012

Introduction

"The new collateral requirements, together with tentative talk of autonomous interest rates, represents a remarkable incipient innovation. In the aftermath of the crisis, some policymakers are beginning to see that a monetary union is not necessarily identical with unfettered capital mobility. Recognition of diverse credit quality is a step back into the nineteenth-century world, and at the same time forward to a more market-oriented and less distorting currency policy. Different interest rates in different countries might open the door to a more stable eurozone."

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