Foreign Affairs Article

PrintPrint EmailEmail ShareShare CiteCite
Style:MLAAPAChicagoClose

loading...

Can Europe’s Divided House Stand?

Separating Fiscal and Monetary Union

Author: Hugo Dixon
November / December 2011
Foreign Affairs

Share

Most pundits argue the eurozone has only two options: break up or create a fiscal union to match its monetary one. In fact, there's a third, and better, path: adopt tighter market discipline, bailing out illiquid countries while letting truly insolvent ones go bust. The result would be a collection of fitter economies and a Europe strong enough to play a big role on the world stage.

Subscribe to Foreign Affairs—the world's leading authority on foreign policy.

Read full article at ForeignAffairs.com.

More on This Topic

Op-Ed

The Gain in Spain

Author: A. Michael Spence
Project Syndicate

A. Michael Spence writes that Spain appears to be in the early stages of restoring a balanced and sustainable growth pattern.

Op-Ed

Politics-Proof Economies?

Authors: David Brady and A. Michael Spence
Project Syndicate

A. Michael Spence and David Brady argue that reformers facing tough constraints on fiscal policy can have a bigger impact on growth by...