Tuesday, June 21, 2016

The Euro

Greg Palast gives an interesting reading here.  But you really have to read all 4 pages of comments to get a fuller picture.

While Mundell was a great promoter of the Euro, and was a University of Chicago economics professor, Mundell's very own Optimal Currency Area theory did not predict a good outcome from the Euro in the reading of many others, including Paul Krugman.  And fellow UofC economist Milton Friedman strongly opposed the Euro in a 2000 debate with Mundell, with Friedman making arguments straight out of the Optimal Currency Area theory.

So did Mundell ignore his own theory just because he hated his Italian plumbers?

I was directed to the Greg Palast article from a comment (by Bruce Wilder) on a thread started by Henry at Crooked Timber.  This asks the larger questions about democracy and technocracy and is also worth reading down through all the comments.



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