The single currency vs. the Rhine model

Abstract

The brand of capitalism practised in the "Rhineland" countries is characterised by the German concept of the "social market economy" . People sometimes wonder whether monetary union might not lead to the implementation of a monetarist policy, which could then jeopardise this social market economy.

The first part of this paper demonstrates that this problem goes much further than that: all Western countries are threatened by what Michel Albert calls "the anti-social market economy" . In the light of this, the second part then goes on to show how the single currency would tend, on the contrary, to reinforce the specific characteristics of the "Rhine model". This is especially true if the single currency does result in a genuine political union (third part).

This paper generally attempts to update the analyses of "Capitalism against capitalism", written in 1991, and which has been translated into 19 languages.