UNDER RECONSTRUCTION -- Our new beautifully-designed, fully responsive site will soon be unveiled...

Europe’s Unfinished Currency

The Political Economics of the Euro

Thomas Mayer

Europe’s Unfinished Currency

Explores how the EMU of the European Union could work, and develops scenarios of how things might evolve in case of failure.

Imprint: Anthem Press
ISBN 9780857285485
October 2012 | 272 Pages | 216 x 135mm / 8.5 x 5.3 | 30+ tables and charts
PRICE:  £19.99  /  $26.95  Buy from Amazon.co.uk  Buy from Amazon.com

About This Book

‘Thomas Mayer, who was until recently the chief economist at Deutsche Bank Group, is both a strong defender and critic of the single currency. He insists that the repairs so far proposed for the euro do not yet add up to a comprehensive strategy for reinforcing the currency’s foundations. He puts forward his own remedy [...] [He has] produced analyses and conclusions written with a clear eye.’ —Stewart Fleming, ‘European Voice’

‘This first-rate book offers a thorough historical review of the euro and an insightful analysis of its current predicament. I highly recommend it’ —Bill Hayes, New York Society of Security Analysts

‘Thomas Mayer’s new book is an important intellectual contribution to the most pressing political and economic debate in contemporary Europe. Some of his suggestions are no doubt controversial, but he has provided a coherent argument in a discussion that will profoundly change the European unification process as we know it.’ —Henning Meyer, Senior Visiting Fellow, London School of Economics and Political Science

For more information please see the book website:



The euro was originally seen as another stepping stone to a politically unified Europe. Yet with the fall of the Berlin Wall, the disintegration of the Soviet Union and the unification of Germany, the need for European political union as a means to ensure peace in Europe disappeared. Due to the fading will for full political union, the euro project lost the prospect of a stable platform in the foreseeable future. As a result, the euro crisis forces policymakers to develop a new architecture for EMU. ‘Europe’s Unfinished Currency’ proposes that this can only be done by way of a currency union of sovereign states, which in itself is a unique historical experiment as no such union has ever survived to date. This volume offers ideas of how the EMU could potentially work, and sketches scenarios of how things might evolve in case of failure.  

Key Insights:

*Outlines the origins of the euro within the quest for the unification of Europe. 

*Explains the historical failures of past monetary unions, including the Latin and Scandinavian currency unions, the US dollar standard and the Austro-Hungarian union. 

*Posits that the European Central Bank in cooperation with a European Monetary Fund should act as the lender of last resort to all systemically important borrowers, including governments, to safeguard price stability.

*Proposes a new EMU architecture, which includes the creation of a European Monetary Fund.

*Discusses possible mutations of the EMU in case of failure.

Readership: Policymakers, financial market participants, academics, students and the general reader will find this book essential to understanding the historical background and the design failures that led to the euro crisis.

Author Information

Thomas Mayer is Senior Fellow at the Center of Financial Studies at Goethe University Frankfurt and Senior Advisor to Deutsche Bank’s management and key clients. From 2010 to 2012 he was Chief Economist of Deutsche Bank Group and Head of Deutsche Bank Research. He has previously held positions at Goldman Sachs and the International Monetary Fund.

Table of Contents

List of Charts, Tables and Textboxes; Introduction; 1. A Question of War and Peace; 2. No Longer a Question of War and Peace; 3. A History of Failures; 4. The Euro’s Happy Childhood and Its Abrupt End; 5. A Crisis of Legitimacy; 6. A (Hidden) Balance-of-Payments Crisis; 7. Forward or Backward?; 8. In Search of a Lender of Last Resort; 9. The Politics of Euro Rescue; 10. A New Foundation for EMU; 11. Summary and Conclusions; Acknowledgements; Notes; Index