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Dec 7, 1998

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The euro is going to be the new European currency starting January 1st 1999 and it could be a revolution ... While the European Central Bank (ECB), under the presidency of Wim Duisenberg is preparing to step into action as the new guardian of monetary stability, some European governments are showing considerable nervousness. The politicians of the new center left governments in Germany, France and Italy seem to consider the bankers' independence a threat to their expansive economic programs. After their electoral successes, the European socialists, led by the German finance minister Oskar Lafontaine (SPD), are trying to overthrow the politics of austerity and financial rigor in favor of a new Keynesian demand side oriented economic policy. Meanwhile, the central bankers are bracing themselves for resistance.

By: Peter Weber

Technology


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