Since the onset of the euro-crisis, the old debate pertaining to the supra-national stabilisers in the euro-area has gained new relevance. While economic textbooks have long stipulated that countries forming a monetary union need an alternative mechanism for dealing with asymmetric shocks and even the early feasibility studies on Economic and Monetary Union EMU had demanded a supranational transfer scheme (MacDougall 1977), EMU came into existence in the late 1990s without such a scheme.

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Written by Sebastian Dullien, a Professor at HTW — University of Applied Science, Berlin, and Senior Policy Fellow at the European Council on Foreign Relations.

Published by Global Labour Column and edited by CSID at Wits University.