The Incomplete Currency - Marcello Minenna

The Incomplete Currency is a treaty about Euro at the date of 2016. From the building blocks to the architecture and then to the current crisis. The risk of break up of the single currency peaked in the last years and now show a rising imbalance. Dysfunctional mechanisms, the relationship between banks and governments, the role & safeguard mechanism of ECB together with the limits of single fiscal policy highlights the inadequacy of the democratic process in Europe. The ECB an unelected organism continue to increase inequalities in Europe. The Minenna proposals of public debt sharing & monetarization of ECB and EU is toward a single political union, but the problems are visible in the Target 2 system and the continuing surplus of German-trade balance, no credit to real economy; the facts from the crisis are linear in subsequent explosion of the public debt and poverty, and now it's discharging its effects in favor the rise of populism in Europe. The numbers for Italy are dramatic, the public debt continues to rise, the industrial production in 2018 was below that of 2008 and the same for unemployment. The aspect of Italexit stems from the pure numbers of emissions of public debt without Euro Bonds and seems to be a linear conclusion after the crash of the internal consumption and GDP that led to unfair competition from core countries and deterioration of Italian bank system with investments & capitals more and more concentrated in core countries of the Euro. An economy based on export combined with low wages, continue to beat hard in Italy and also with the aid of many other studies in references I see no real solution.

The Dollar Trap - Eswar S. Prasad

This is a story of one world dominance in the form of fiat currency: the Dollar. The description begin with a recent history of economics events, the crisis and the causes borne them. The author doesn't hide the debt problem, tackle the focus from various theoretical backgrounds. Emerging markets for example, they aren't widely and structured markets for not to mention the institutions and political problems. Dysfunctionality that we encounter almost in the entire book, from the past systems, as gold standard to the present with currency wars to Renminbi constrained course. Many others questions are treated by one common realism that impose the prevailing of the Dollar; is not the GDP dimension the unique form of U.S.A. economy, (China is now the biggest) but for the liquidity of its market, the small turmoil of its political system, and not last, the rule of law.

The interesting conclusion is that the ample FDI direct to China can't compete with the stability of Dollar because the same China can't bring back its money from U.S. Bond (in this reading the motives that cause the state of art) without loss of money, that are intertwined with almost entire world into this single currency, perhaps full of debt, but undoubtful the only offsetting by the world of trade and finance engineering and its evils effects of exploitation &/or wellbeing: the Dollar. The finally hope is that the transformation take place in such fiat currency, but with the presence of many more currencies with less debt and more openness.