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Why the Early U.S. Didn’t Go the Way of the Euro February 2, 2012

Posted by proeconomia in Fiscal policy, Main, Monetary policy, On the crisis, Opinion.
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An interesting historical perspective on the early monetary union of the you U.S. The author makes two points: “European policy makers hoped that the euro would serve as the unifying and integrating force of the European Union much as, they believed, the dollar had for the early U.S. What the Europeans failed to appreciate was that early America’s real glue was not its dollar union but its fiscal one.” and then “What kept the tender young republic together during its formative decades, then, was not a shared unit of account called the dollar but a shared sense of fairness. Debts incurred in the defense of all were shared by all. Debts undertaken to build a state canal or to thwart federal law were not.”

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