SAFE Policy Lecture: Michael R. Wickens
Title: Europe’s Monetary Union – Perspectives on the Five Presidents’ Report
Speaker: Michael R. Wickens (University of York)
Europe’s Monetary Union, substantial institutional restoration efforts notwithstanding, is still inherently fragile and incomplete. Financial markets’ mispricing of risk, interacting with EMU’s inconsistent institutional design, were the main causes of the protracted and still festering Eurozone crisis. Therefore, assessing the Five Presidents' Report’s proposals to address those issues, is of the essence. However, the Report raises major question marks. In particular, its proposed fiscal rules, ultimately removing the last remaining national stabilization tool, is potentially calamitous. This would also be difficult to align with democratic standards of legitimacy and accountability.
Michael R. Wickens, Professor of Economics at the University of York and a former Managing Editor of the Economic Journal, is an internationally renowned authority in macroeconomics, finance as well as econometrics, all fields to which he has contributed importantly. He is in particular the author of a successful graduate-level textbook (Macroeconomic Theory. A Dynamic General Equilibrium Approach). Moreover, he is very much an applied, policy-oriented economist, and as such inter alia a Consultant to the IMF and a Specialist Advisor to the House of Lords Economics Affairs Committee. In this capacity he has dealt notably with issues of EMU. His most recent work revisits questions around a resilient institutional architecture for EMU.