A monetary union among autonomous countries cannot simultaneously maintain an independent monetary policy, national fiscal sovereignty and a no-bailout clause. These three features make up an impossible trinity, and attempts to preserve all three concurrently will ultimately end in failure. In...

In this paper, Modern Monetary Theory (MMT) is confronted with the peculiarities of the institutional setting of the European Monetary Union (EMU) and the monetary policy of the European Central Bank (ECB). Since the financial and euro crises of 2008, monetary policy has changed drastically both...