These crises did not prevent Europe from completing the process of monetary unification by the creation of the euro. It is as Willy Brandt once said: “The history of the EU is the history of its crises”. Concluding remarks Let me conclude. Globalisation, European integration and aging do not stop after this conference.
This means that if the FA is faced with an unexpected decline in its current and expected future real surpluses, it will be forced to default. Thus, once we allow for the possibility of default by the FA, a sufficiently tough CB can have considerable control over the price level. Of course, I’ve been arguing through examples.