Part I: The European Monetary and Economic Union, in its present form, exposed to insurmountable difficulties

Abstract

Questions whether the planned European Monetary Union is capable of solving the social economic challenges of our time. Examines the economic and financial history of modern times; explains the formulation of the impossibility theorem in practice, suggesting the equation of unified knowledge as a solution to the problem of economic calculation; and constructs a plan for a free and stable European Monetary and Economic Union. Looks at the provisions of the Maastricht Treaty (1992) questioning its ability to solve the basic problems of the member states of the European Union. Addresses a number of issues contained within the Treaty: acceptable socially beneficial goals; unacceptable socially harmful, adverse anti‐equilibrium means, policies, reforms and regulations; and the phenomenon of physics’ ‘chain reaction’ within economics. Gives a synopsis of anti‐equilibrium elements and forces in the Treaty of Maastricht, debating what needs to be done to ensure that European Monetary and Economic Union can become an immediate and lasting success.

Citation

Rugina, A.N. (2001), "Part I: The European Monetary and Economic Union, in its present form, exposed to insurmountable difficulties", International Journal of Social Economics, Vol. 28 No. 1/2, pp. 71-116. https://doi.org/10.1108/03068290110352037