Beschreibung
Economic crisis in Greece led to discussions on the security
of the euro. To answer this question, first the functions of
money, the theoretical basis of monetary policy and the
criteria for the security of a currency have to be
discussed. The actual crises demonstrate that neither
Keynesian interest control nor the monetarisms control of
the money amount can solve the problems. Regarding the
advantages of both approaches an own approach for
controlling the economy is developed. The new approach of
monetary theory is based on equilibriums of goods-, money
and labor markets. The found equilibrium solution is no
identity (approach of monetarism) and no „equilibrium with
unemployment“ (Keynes). But the approach leads to a secure
currency.
Dr. Hermann Witte, Professor of Business
Administration, Logistics and Environmental Economics,
University of Applied Sciences Osnabrück, Campus Lingen,
Institute of Management and Technology.
