Issue One

Editor's Introduction

I am pleased to devote the inaugural issue of the Center for Society & Economy's POLICY NEWSLETTER to the topic of the euro. The introduction of the euro is an event of the first magnitude with implications that are at once financial, economic, political, and cultural. To what extent does the euro signal an era of increasing economic and social integration in Europe? What have the effects of the currency been thus far, and what are its prospects for the future? And what does monetary integration in Europe mean for businesses, investors, and policymakers? These are just some of the questions explored in this issue.

Economic and financial impacts of the new currency are examined in Michael Klein's "Europe Since the Euro," which weighs the early effects of the euro against some of the predictions that were made for the new currency. Gunter Dufey's "What Has Changed with the Euro?" zeroes in on the euro's possible impact on financial markets in the United States and Europe.

Four articles highlight political as well as economic aspects of the euro from different vantage points. Daniela Gobetti's "Localism, Globalization, and the Euro" examines the unintended imbalances caused by economic developments outpacing political arrangements. Nigel Dodd's "Convergence in Euroland" explores the assumption of converging economies and policies in Europe in the light of political realities. In "The Promise of the EMU and the Problem of Legitimacy," Neil Fligstein and Kathleen R. McNamara offer informed speculations about the respective roles of the European Central Bank and national governments in responding to economic crisis and establishing both fiscal and monetary policy. Joel Slemrod's "One Currency, One Tax System?" asks whether monetary integration either requires or predicts a harmonization of tax policy in Europe.

Our last two articles emphasize the wider cultural context of the euro. Mabel Berezin's "The Euro Is More Than Money" highlights the symbolic meaning of money and the challenge of "selling" the euro, particularly in the light of recent attacks on the currency from far-right political parties in Europe. In "The Widening Cultural Divide," Wayne Baker points to the role of cultural heritage and values in facilitating or hindering European social integration.

My thanks to the authors of this fine series of articles on the euro, and to the Center for European Studies at the University of Michigan for co-sponsoring this issue.

Wayne E. Baker
Editor
wayneb@umich.edu

Link to Article Index