Tags: Money | EU | Joseph Stiglitz | Europe | Euro | Disaster

Top Economist to Eurozone: Dump Euro or Face Disaster

Top Economist to Eurozone: Dump Euro or Face Disaster

Joseph Stiglitz (Adam Jeffery/CNBC/NBCU Photo Bank via Getty Images)

By    |   Tuesday, 09 August 2016 01:03 PM

A Nobel Prize-winning economist says the European Union must get rid of the euro and allow its 28 member states to adopt a unified but flexible currency if it wants to survive.

"The euro experiment has been fascinating … [but] it was conceived with a mixture of flawed economics and ideologies," Joseph Stiglitz writes in his book, "The Euro: How a Common Currency Threatens the Future of Europe," to be published next week by W.W. Norton.

"It was a system that could not work for long — by the time of the Great Recession, it's flaws were exposed for all to see."

The euro, adopted in 1992, has been unable to adjust to the wide socio-economic differences of its members, argues Stiglitz, a Columbia University professor and former chief economist at the World Bank.

Stiglitz, who won the Nobel Memorial Prize in Economic Sciences in 2001, calls for a new "flexible euro." Each participating nation would adopt its own version of the currency — thereby making the European economy more stable and able to adapt to international economic shifts.

In an excerpt from the book published in Vanity Fair, Stiglitz says:

"The euro was a means to an end, not an end in itself — and a flexible euro would address some significant fundamental problems.

"For all the emotions that the euro has brought on, for all the commitments that have been made to preserve it, in the end, the euro is just an artifice, a human creation, another fallible institution created by fallible people."

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A Nobel Prize-winning economist says the European Union must get rid of the euro and allow its 28 member states to adopt a unified but flexible currency if it wants to survive.
EU, Joseph Stiglitz, Europe, Euro, Disaster
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2016-03-09
Tuesday, 09 August 2016 01:03 PM
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