Macroeconomic Flaws in the Euro

Mark Xenakis

International Accounting

Fundamental Macroeconomic Flaws in the Euro

Five years ago, the biggest thing in economic and international news was the introduction of the new European currency, the Euro, into circulation and into the pockets of the consumers of the participating countries within the European Monetary Union. In an attempt to unite Europe and to form a dominant currency to rival the US dollar, Europe locked their exchange rates and went full steam with this plan. Unfortunately, for many of the European countries, what seemed to be the end all for European economics, quickly unraveled the inherent reality of the fundamental macroeconomic flaws in the European monetary system that may cause its downfall and deficit policy that could lead to its utter collapse. Even with this in mind, some speculate that, with the right amount of revision and monitoring, the Euro might actually have a chance of becoming the worlds leading currency. In any cases, however, before looking this far into the future, we must first remember the past.

For decades, Europe and all of the countries within its continental borders have disagreed, argued, and on many occasions, fought wars over disputing issues, differing cultures, and the occasional expansionist fascist. From WWII, to the Russian uprising, Europe has been separated by years of wars and hatred. And despite attempts, it is