This paper starts with a brief description of the situation before the establishment of the European Monetary Union (EMU), i.e., the problems of the European Monetary Systems (EMS) which was established in 1979 and which was in need of repair. The paper then deals with the various possibilities...

The present essay constitutes a plea to widen macro-economic analysis and "new political economics" by utilizing the procedure of "analytic narratives" that has been successfully put to the test by economic historians.