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Completing the euro: The euro treasury and the job guarantee

Author

Listed:
  • Esteban Cruz-Hidalgo

    (Universidad de Extremadura)

  • Dirk H. Ehnts

    (European University of Flensburg)

  • Pavlina R. Tcherneva

    (Bard College)

Abstract
The problems with the design of the Eurozone came into focus when, late in 2009, several member nations – notably Greece – failed to refinance their government debt. The crisis that followed was not entirely a surprise. When the Euro was launched in 1999, many economists warned that the single currency was unworkable. Even Eurozone optimists argued that the Euro project would eventually need to be completed. More than 10 years after the crisis, unemployment rates remain elevated and continue to threaten the social, political and economic stability of the Eurozone. The institutional constraints of the single currency however preclude bold action to address these challenges. In this paper, we suggest that tackling the twin problems of the Eurozone – its institutional flaws and mass unemployment – could be addressed by creating a Euro Treasury that would finance a Job Guarantee program, which would eliminate mass unemployment, enhance price stability, and foster social and economic integration across Europe.

Suggested Citation

  • Esteban Cruz-Hidalgo & Dirk H. Ehnts & Pavlina R. Tcherneva, 2019. "Completing the euro: The euro treasury and the job guarantee," Revista de Economia Critica, Asociacion de Economia Critica, vol. 27, pages 100-111.
    • Handle: RePEc:ret:ecocri:rec27_09
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    References listed on IDEAS

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    Cited by:

    1. Dirk Ehnts & Michael Paetz, 2021. "COVID-19 and its economic consequences for the Euro Area," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 11(2), pages 227-249, June.
    2. Dirk Ehnts & Michael Paetz, 2021. "Wie finanzieren wir die Corona-Schulden? [How Do We Finance the Corona Debt? Attempting a “Right” Answer to the “Wrong” Question from the Perspective of Modern Monetary Theory]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 101(3), pages 200-206, March.
    3. Telma Barrantes-Fernández & Esteban Cruz-Hidalgo & José Francisco Rangel-Preciado & Francisco Manuel Parejo-Moruno, 2023. "Decommodify the 2030 Agenda: Why and How to Finance What Is Not Profitable?," Sustainability, MDPI, vol. 15(5), pages 1-16, February.
    4. Tamara Premrov & Leonard Geyer & Nicolas Prinz, 2022. "Arbeit für alle? Kosten und Verteilungswirkung einer Jobgarantie für Langzeitbeschäftigungslose in Österreich," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 48(1), pages 59-82.

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