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- W48841963 abstract "Jonung and Drea (2010) err in concluding that there was no American economist who made a strong case for the euro prior to its birth. I in fact consistently espoused a viewpoint opposite to the three components of the taxonomy by Rudiger Dornbusch that inspired the title of their paper, arguing from the outset of the debate that the new currency would be created on schedule; that it was a good idea; and that it would be wholly successful. I was a bit premature in suggesting as well that the exchange rate of the new euro would be quite strong from the outset, but that was probably due to its being solely a virtual asset in the initial period; it has of course appreciated considerably ever since. My view that the new currency would “eventually” or “ultimately” move up alongside the dollar as an international currency “over a longish transition period” has also arguably proven to be premature, though the euro’s global market share has risen about five percentage points since its inception. I believe a clear trend in that direction is underway, due to the flow diversification accurately predicted by Peter Kenen rather than my expectation of a large portfolio diversification. My analysis differed from that of virtually all my colleagues because it was based on political economy rather than technical considerations such as the theory of optimum currency areas. Having worked on the economics of European unification throughout my career, dating back almost to the Treaty of Rome itself, I have been constantly impressed—indeed, often amazed—by how the individual members of the Union invariably overcame their substantial national differences" @default.
- W48841963 created "2016-06-24" @default.
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- W48841963 date "2010-01-01" @default.
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- W48841963 title "I Was a Euro Enthusiast" @default.
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