Uncle Milt was always worth listening to

In 1997 he wrote:

The drive for the Euro has been motivated by politics not economics. The aim has been to link Germany and France so closely as to make a future European war impossible, and to set the stage for a federal United States of Europe. I believe that adoption of the Euro would have the opposite effect. It would exacerbate political tensions by converting divergent shocks that could have been readily accommodated by exchange rate changes into divisive political issues. Political unity can pave the way for monetary unity. Monetary unity imposed under unfavorable conditions will prove a barrier to the achievement of political unity.

The European Parliament election result is consistent with his views on the matter.

2 thoughts on “Uncle Milt was always worth listening to

  1. Amazing how Milton Friedman could see that far into the future. A remarkable fellow.

    The ECB is now witlessly fomenting extremist politics by asphyxiating the European economy.

    While Europe has mired mired in perma-recession, the ECB has brought the continent close to deflation. Central bankers cannot be trusted with central banking.

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