*Crisis Cycle*

That is the new book by John H. Cochrane, Luis Garicano, and Klaus Masuch, and the subtitle is Challenges, Evolution, and Future of the Euro.  Excerpt:

Our main theme is not actions taken in crises, but that member states and EU institutions did not clean up between crises.  They did not reestablish a sustainable framework for future monetary-fiscal coordination that would unburden the ECB.  They did not mitigate unwelcome incentives to ameliorate the next crisis and make further interventions less likely.  These too are understandable failings, as political momentum for difficult reforms is always lacking.  But the consequent problems have now built up, such that the ad hoc system that emerged from crisis internventions is in danger of a serious and chaotic failure.  Now is the time to get over inertia.  The EU and its member states should start a serious process of institutional reform.  We aim to contribute to such a discussion.

Overall this book made me more pessimistic about the future of the euro.  The authors propose a joint fiscal authority, but that to me makes the problems worse rather than better?  After all, these countries still all have separate electorates, and want to have a real say over their own budgets.  We will see.  You will recall both Milton Friedman and Paul Krugman, at the time, doubted the stability of the euro.