Miscellaneous
There was plenty of scepticism among economists about the likely success of a common currency in Europe. The immediate problem is that peripheral countries have seen their public sectors incur large deficits and incautious private sectors incur large debts. In addition, wages in the Southern economies have grown more rapidly, and productivity more slowly, than in the North. This lecture will set out the risks this poses to full political union and explore whether there is a solution.