Policy paper 9 – Lessons for the Euro from early US monetary and financial history

With FLAD’s support, we publish here the ninth IPP Policy Paper, by Jeffry Frieden: Lessons for the Euro of American monetary and financial history.

Despite important differences, American experience is the richest historical source of inspiration, to shape the process of European integration, whether it is destined for a federal Europe or not. The Portuguese version available here exclusively, from the original essay published in the Bruegel Essay and Lecture Series (see here), takes us on a quick journey through the initial history of the dollar – much more troubled and tense than we tend to think habitually.

However, the many differences – and several similarities – with the path the Euro has made, and what is forecast for the coming years, turns out to be a relatively positive view of the Euro’s outlook. But also some important warnings, highlighting the importance, for example, that should be given to the credibility of the monetary and financial institutions of the Euro.