Euroland and the World Economy

PHILIP ARESTIS University Director of Research, Cambridge Centre for Economics and Public Policy, University of Cambridge, UK; Senior Scholar, Levy Economics Institute, New York, US; Vice-Chair, Macroeconomics, Money and Finance Research Group RICCARDO BELLOFIORE Professor of Political Economy, 'Hyman P. Minsky' Department of Economics, University of Bergamo, Italy; Research Associate, History and Methodology of Economics Group, Faculty of Economics and Econometrics, University of Amsterdam, The Netherlands FABRICE CAPOEN Assistant Professor of Economics, University of Caen, France; Research Fellow, Observatoire Français des Conjonctures Économiques, Fondation Nationale des Sciences Politiques, France JÉRÔME CREEL Research Fellow at Observatoire Français des Conjonctures Économiques, Fondation Nationale des Sciences Politiques, France; Deputy Director, OFCE, Paris, France HEINER FLASSBECK Honorary Professor, Hamburg University, Germany; Director, Division on Globalisation and Development Strategies, UNCTAD Secretariat JAMES FORDER Fellow, Balliol College, Oxford, UK CHARLES GOODHART Member, Financial Markets Group, London School of Economics, UK JOSEPH HALEVI Senior Lecturer, Faculty of Economics and Business, The University of Sydney, Australia ECKHARD HEIN Senior Researcher, Macroeconomic Policies, Macroeconomic Policy Institute (IMK), Hans Boeckler Foundation, Duesseldorf, Germany; Visiting Professor, Carl von Ossietzky University Oldenburg, Germany; VisitingProfessor, Vienna University of Economics and Business Administration, Austria GEORGE IRVIN Fellow, CERF, Judge Institute, University of Cambridge, UK; Professorial Research Fellow, Development Studies Faculty, University of London, SOAS, UK; Visiting Research Fellow, ICER, Turin, Italy ALEX IZURIETA Senior Economic Affairs Officer, UN/Department of Economic and Social Affairs (DESA) SERGIO ROSSI Associate Professor of Economics, University of Fribourg, Switzerland CLAUDIO SARDONI Professor of Economics, University of Rome 'La Sapienza', Italy MALCOLM SAWYER Professor of Economics, University of Leeds, UK; Pro-Dean, Learning and Teaching, Faculty of Business, University of Leeds, UK ACHIM TRUGER Senior Researcher, Public Finance and Tax Policy, Macroeconomic Policy Institute (IMK), Hans Boeckler Foundation, Duesseldorf, Germany RICHARD A. WERNER Chair, International Banking, School of Management, University of Southampton, UK; Chief Investment Advisor, ProfitFundCom's Global Macro Fund; Chief Economist, Profit Research Center Ltd, UK

Introduction; J.Bibow & A.Terzi PART I: EUROLAND ON A COLLISION COURSE Global imbalances, Bretton Woods II, and Euroland's Role in All This; J.Bibow Wage Divergences in Euroland: Explosive in the Making; H.Flassbeck Can the Euro Area Play a Stabilizing Role in Balancing Global Imbalances?; P.Arestis & M.Sawyer PART II: POLICY COORDINATION AND INCREASED INTEGRATION AS MEANS TO PROPERLY STEER EUROLAND Whatever Happened to 'Policy Coordination'?; J.Forder The Economic Rationale of the EMU and the Euro; C.Sardoni Righting Global Imbalances: Recession, Protection or Reflation?; A.Izurieta & G.Irvin PART III: REFORMING EUROLAND'S INSTITUTIONAL FRAMEWORK AND MACROECONOMIC POLICY GOVERNANCE Replacing the Stability and Growth Pact?; C.Goodhart Fiscal Policy and Macroeconomic Performance in the Euro Area: Lessons for the Future; E.Hein & A.Truger Germany's Choice and Lessons from Japan: Supply vs. Demand Policy, Fiscal vs. Monetary Policy; R.Werner You Can't Always Get What you Want: Why Europe is not Keynesian-able while the US New Economy is Driven by Financial Keynesianism; R.Bellofiore & J.Halevi PART IV: PROSPECTS AND LIMITS OF THE EURO AS A GLOBAL CURRENCY 'Not My Fault' or Would Spreading the Maastricht Wisdom beyond Europe Really Do Much Good At All?; J.Creel & F.Capoen The Role of the Euro in the International Monetary Arena: Present and Prospects; S.Rossi International Payments Imbalances and the Prospective Role of the Euro; A.Terzi