History of Monetary Thought through the eyes of the Classics

By Pedro Schwartz

The institution of money is not at the centre of the research programmes of mainstream macroeconomics. In most models proposed by the profession money is inserted as an afterthought – if at all. This contrasts with the importance generally attributed to financial and monetary institutions when analysing the political economy of crashes such as the Great Recession and its aftermath. History can help remedy this contradiction. Since money is such an abstract institution the same problems recur across time and place, so that the study of past and present monetary theories will turn out to be surprisingly relevant in the present moments of perplexity.

16th July – 1st August

The Economics of Monetary Unions. Past Experiences and the Eurozone

Sponsored by Institute of International Monetary Research and Santander Universities UK

Juan Castaneda, Institute of International Monetary Research and University of Buckingham
Alessandro Roselli, CASS Business School
Geoffrey Wood, University of Buckingham

We have invited academics and commentators in macroeconomics, central banking and finance, from the UK and across Europe to contribute to the sessions. It should be an exciting occasion to discuss the challenges the Eurozone still faces ten years after the start of the Global Financial Crisis. We will have four sessions on (1) the historical precedents of currency unions and when they failed, (2) internal imbalances and the Target2 system in the Eurozone, (3) when countries form a monetary union and when monetary unions fail and (4) the Eurozone and the fiscal union.

By invitation only. Please RSVP to Gail Grimston.


Day 1 (Thursday 21 February 2019)

Session 1 (14:00 – 16:00)
Lessons from previous currency and monetary unions. The historical perspective and comparison with the current Eurozone arrangements. Chaired by Professor Alejandra Irigoin (LSE).

  • ‘Precedents of the Eurozone. The Habsburg Monarchy as Monetary Union in a multinational State’. Clemens Jobst (Oesterreichische Nationalbank and CEPR).
  • ‘The gold standard, the Latin Monetary Union and the Euro standard’. Éric Monnet (Banque de France).
  • ‘A measurement of asymmetry in the running of the classical gold standard’. Juan Castaneda (IIMR and University of Buckingham) and Alessandro Roselli (Cass Business School and University of Buckingham)

Coffee break (16:00 – 16:15)

Session 2 (16:15 – 17:45)
Are permanent (internal) trade imbalances sustainable in a single monetary area? Chaired by Charles Goodhart (LSE).

  • ‘Payment systems in a multinational currency union’ (title to be confirmed). Uwe Schollmeyer (Bundesbank University).
  • ‘Target risks without euro exits’. Hans-Werner Sinn (Ifo Institute, University of Munich.

Day 2 (Friday 22 February 2019)

Session 3 (9:30 – 11:00)
When do countries form a monetary union and when monetary unions fail? The Economics of monetary disintegration. Chaired by Geoffrey Wood.

  • ‘The Economics of the European Monetary Integration: Pros and Cons of Being a Euro Country’. Donato Masciandaro (Bocconi University).
  • ‘The measurement of the optimality of a currency area: the US dollar, UK pound and the Eurozone’. Juan Castaneda and Pedro Schwartz.

Coffee break (11:00 – 11:15)

Session 4 (11:15 – 12:45)
Is the Eurozone something more than a monetary union? Chaired by Dimitrios Tsomocos.

  • ‘A safe asset and a fiscal capacity for the Eurozone’. Lorenzo Codogno (LSE) and Paul van den Noord (University of Amsterdam).
  • “Public Support for the Euro and its governance. The first two decades”. Felix Roth (University of Hamburg) and Lars Jonung (Lund University).

Concluding speech and closing remarks (12:45): ‘The constitutional problems faced by a multi-government monetary union in the ‘managed’ era’. Tim Congdon (IIMR and University of Buckingham).

Lunch (13:30 – 15:00).

Please note; slides should not be quoted and/or reproduced without the authors’ permission.