In order to understand the euro zone's current predicament, it is useful to see Europe's Economic and Monetary Union as an intra-EU gold standard system: a fixed exchange-rate system with strict internal budget rules for external adjustment and therefore a deflationary bias. I will explain this in more detail below. But first, how do we know a gold standard is an unworkable idea for modern democracies?
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How Europe's New Gold Standard Undermines Democracy Matthias Matthijs | Assistant Professor of International Political Economy at Johns Hopkins University’s School of Advanced International Studies (SAIS)