This book takes a broad perspective to challenge orthodox views about the role of Euroland in the world economy, providing a comprehensive framework to address important questions for the future of the Euro, including the key question: will the single currency contribute to world economic dynamism or be driven by the vigour and vitality of others?

This book takes a broad perspective to challenge orthodox views about the role of Euroland in the world economy, providing a comprehensive framework to address important questions for the future of the Euro, including the key question: will the single currency contribute to world economic dynamism or be driven by the vigour and vitality of others?

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