Monetary union without fiscal union leads to weak economic convergence
The paper examines whether a monetary union like the Eurozone needs a fiscal union. It shows that after 18 years, there is still weak economic convergence in the Eurozone. The main issues are domestic policy failures, not institutional ones. The root causes of the crisis are political flaws and weak rule enforcement. The author suggests that a monetary union can work without a fiscal union if rule enforcement is improved and made more independent.