Monetary Power and EMU: Macroeconomic Autonomy and Adjustment in the Eurozone


Year of publication: 2013
Author(s): Mattias Vermeiren
Appeared in: Review of International Studies, vol.: 39


This article examines the impact of the establishment of Economic and Monetary Union(EMU) and the introduction of the euro on the monetary power of its member states. Taking into consideration continuing capitalist variety among national political economies of the Eurozone, I examine the implications of EMU for the macroeconomic autonomy of different national models capitalism. Drawing on a comparative capitalism perspective, it is argued that the Eurozone’s coordinated market economies – Germany in particular – have gained much more from the introduction of the euro in terms of monetary power than the other models.This argument will be based on an analysis of two key dimensions of EMU’s macroeconomic governance regime: (1) exchange rate policymaking and (2) the management of balance-of-payments.