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Nicola Acocella, University La Sapienza, Memotef, Rome, Italy

How to Reform the EU and the EMU

Volume 73 - Issue 3, August 2020
(pp. 325-350)
JEL classification: B20, E42, F00
Keywords: Monetary Union, Institutions, Theoretical Foundations, Reforms


The paper starts from the observation that the theoretical foundations of the EMU are largely outdated and European institutions have shown a number of faults. These can be summarized in the fact that there are frictions at work – which mainly derive from existing national borders - and adjustment issues that are not tackled, at least in a reasonably long period, by the single currency, free markets and constraints on national policies. It then suggests the broad lines along which the EMU could be reformed and indicates different growth and short-term strategies for the institutions as well as macroeconomic and microeconomic policies.

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Institute for International Economics
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Istituto di Economia Internazionale
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