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Eurozone Dystopia

Groupthink and Denial on a Grand Scale William Mitchell, Professor of Economics, Centre of Full Employment and Equity, University of Newcastle, Australia
Eurozone Dystopia traces the origin of the Eurozone and shows how the historical Franco-German rivalry combined with the growing dominance of neo-liberal economic thinking to create a monetary system that is deeply flawed and destined to fail. It argues that the political class in Europe is trapped in a destructive groupthink which prevents it from seeing their own policy failures. Millions are unemployed as a result and the member states are caught in a cycle of persistent stagnation and rising social instability.
Extent: 520 pp
Hardback Price: $175.00 Web: $157.50
Publication Date: 2015
ISBN: 978 1 78471 665 3
Availability: In Stock
Paperback Price: $65.00 Web: $52.00
Publication Date: 2016
ISBN: 978 1 78471 667 7
Availability: In Stock
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  • Economics and Finance
  • Political Economy
  • Post-Keynesian Economics
  • Politics and Public Policy
  • European Politics and Policy
  • Political Economy
Eurozone Dystopia traces the origin of the Eurozone and shows how the historical Franco-German rivalry combined with the growing dominance of neo-liberal economic thinking to create a monetary system that was deeply flawed and destined to fail. William Mitchell argues that the political class in Europe is trapped in a destructive groupthink. Based on a flawed understanding of macroeconomic fundamentals, groupthink extols the virtues of the erroneous concept of the self-regulating free market and prevents Europe from seeing its own policy failures. As a result, millions are unemployed, with imperilled member states caught in a cycle of persistent stagnation and rising social instability.

Providing a detailed historical analysis of the evolution of the Eurozone and its failings from the 1940s to the present day, the book argues that the Eurozone lacks the necessary monetary architecture, particularly the existence of a federal fiscal function which could have resolved the economic crisis quickly. The author examines the options available to Europe and concludes that an orderly abandonment of the euro and a return to national currencies is the superior option available. The justification for this conclusion is exhaustively argued within a Modern Monetary Theory framework.

This thoughtful and accessible account of Europe’s economic woes will appeal to all those who are seeking an explanation for the crisis and are receptive to sensible and credible alternatives to the current scenario.
Contents: 1. Introduction PART I THE EARLY YEARS 2. Early Attempts at Monetary Union and the Hague Summit 3. The Werner Report and the Collapse of Bretton Woods 4. The ‘Snake in the Tunnel’ Reappears 5. Monetarism Arrives Amidst Currency Turmoil 6. The Delors Report 7. Onward to Maastricht 8. The Maastricht Treaty 9. Converging to Crisis and Austerity 10. The Ideological Straitjacket 11. The Stability and Growth Pact (SGP) 12. The Convergence Farce: Smokescreens and Denial PART II THE PATH TO CRISIS 13. The First Few Years: Smug Self Congratulation and Mass Delusion 14. The 2003 Fiscal Crisis 15. The German “Jobwunder” 16. European Groupthink: Denial on a Grand Scale PART III THE OPTIONS FOR EUROPE 17. A Monetary Framework for Fiscal Policy Activism 18. Framing the Debate - Two Alternative Visions of the Economy 19. The Basic Principles of Functional Finance 20. The Federal Solution 21. Overt Monetary Financing 22. Abandoning the Euro 23. Employment Guarantees References Index