Robert Mundell: Euro is here to stay | Financial Post

What is often missed by economists is that the creation of the euro was a political event of great importance to the future of European integration. Before World War I, Europe was, in Max Weber’s phrase, “mistress of the world” (he called America “Europe overseas”). The two World Wars and the end of the Cold War led to the collapse of colonialism and a diminution in European power below its equilibrium and certainly its optimum. The euro is more than just the icing on the cake on the single European market and the European Union (EU), it is the glue that keeps the core of Europe together. Never before has there been a currency union that covers so large a share of the world economy and that has grown so successfully and so rapidly within the space of a decade and a half.

via Robert Mundell: Euro is here to stay | Financial Post.

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