In its current state, the euro is an unfinished currency. Its completion threatens to fail due to the inability of the European peoples to form a fiscal and banking union through political unification. But a political union is only an indispensable prerequisite for a completed currency if it is conceived as state money in the form of fiat credit money. In the following, I would like to show that the euro could be realised if it were set up in a different form. It would then also fulfil the necessary conditions that could make it an international reserve currency.
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About the author
Thomas
Mayer
Founding Director of the Institute and former Chief Economist of the Deutsche Bank Group and Head of Deutsche Bank Research. Previously at Goldman Sachs, Salomon Brothers, the International Monetary Fund and the Kiel Institute for the World Economy.
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