Question

Will the Euro ultimately fail, or did it's survival through the global recession prove its significance in the world economy for years to come?

Answer 1

The Euro could possibly fail because the danger for the Euro lies in the fact that the European Union is made up of independent sovereign countries. Therefore, if there are any serious problems, these countries' nationalism will take precedence which then can lead to a breakdown of the EU and consequently of the Euro. In fact, Roubini and Mihm in their book "Crisis Economics" make the statement that the Euro's "...continued survival depends on the unity of a fractious group of countries, many of which shoulder staggering deficits, aging populations, and growing competition from emerging markets."

Answer 2

Hi! I think you could look for your answer on the book International Economics by Paul Krugman and Obstfeld. If my memory is right there is a chapter about monetary union and a box specifically about the Euro. The answer to your question involves the Optimum Monetary Area Theory... Hope it helps...

Answer 3

Thank you both! Your responses really helped!

Answer 4

You're welcome