Nicholas Kaldor on putting the cart before the horse fallacy

10 April, 2015 at 15:15 | Posted in Economics | 2 Comments

Foreseeing the future is difficult. But sometimes it seems as though some people get it terribly right …


Some day the nations of Europe may be ready to merge their national identities and create a new European Union – the United States of Europe. If and when they do, a European Government will take over all the functions which the Federal government now provides in the U.S., or in Canada or Australia. This will involve the creation of a “full economic and monetary union”. But it is a dangerous error to believe that monetary and economic union can precede a political union or that it will act (in the words of the Werner report) “as a leaven for the evolvement of a political union which in the long run it will in any case be unable to do without”. For if the creation of a monetary union and Community control over national budgets generates pressures which lead to a breakdown of the whole system it will prevent the development of a political union, not promote it.

Nicholas Kaldor (1971)

2 Comments »

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  1. Tack prof, Syll! Den läste jag en gång,men glömt helt!Myet tak Lars, och må väl og beste hilsen!

  2. Bravo! Great quote.🙂


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