Taking a Different View: The Case of the Eurozone Macroeconomic Policies as a Case of Incompetence pp56-66
Abstract: This paper aims at shedding a new and different light over a very big problem that actually is being felt by the European Society and by the world at large: namely the difficulties the EU is having, since adopting the EURO as a currency in 2002, with its own management of macroeconomic policies, and with its own forecasts over growth. We follow Sveiby (2012) analysis as a methodology. According to that author, radical innovation generates incompetence due to inability in adjusting to the environment. The incompetence materializes itself in wrong predictions by otherwise and formerly competent and acknowledged experts. Sveiby 2012, dissects the case of the financial crisis of 2007‑8, as a case in which radical innovation in the financial markets produced massive managerial incompetence with huge economic and social consequences. By the same token we assume that the Eurozone became a case of incompetence at the level of macroeconomic management. We show evidence of that incompetence because we compare the predictions before the Euro and with the Euro and analyze the impact the Euro entrance add in the correctness of the experts’ predictions. Furthermore we say that experts should take into account that macroeconomic restrictions posed by the Eurozone regulations deeply affect the economy of the more divergent Eurozone Member States. Moreover, the effect of the regulations has not been rightly accounted. The miscalculation generates mistakes in prediction of policy impacts. Those mistakes have major negative effects in the life of ordinary citizens. Therefore we believe that if ones assumes, as we do, and prove, that the Eurozone has currently a problem of managerial incompetence, the finding might have huge economic, social, and political effects The paper is original because we sincerely don’t know (and believe it is not our fault) of any study that analyzes the problem of the current Macroeconomic crisis in the EU as a problem of incompetence. Finally we believe the study could and should developed in a multidisciplinary and multi‑country book.