Eurozone Dystopia
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Eurozone Dystopia

Groupthink and Denial on a Grand Scale

William Mitchell

Eurozone Dystopia traces the origin of the Eurozone and shows how the historical Franco-German rivalry combined with the growing dominance of neo-liberal economic thinking to create a monetary system that was deeply flawed and destined to fail. It argues that the political class in Europe is trapped in a destructive groupthink which prevents it from seeing their own policy failures. Millions are unemployed as a result and the member states are caught in a cycle of persistent stagnation and rising social instability.
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Chapter 17: A monetary framework for fiscal policy activism

William Mitchell


The mind likes a strange idea as little as the body likes a strange protein, and resists it with a similar energy. It would not perhaps be too fanciful to say that a new idea is the most quickly acting antigen known to science. If we watch ourselves honestly, we shall often find that we have begun to argue against a new idea even before it has been completely stated. I have no doubt that that last sentence has already met with repudiation—and shown how quickly the defence mechanism gets to work. (Trotter, 1941). The austerity consensus that holds the Eurozone in a straitjacket is not grounded in any logical understanding of the modern monetary system and deliberately ignores many of the actual options that are available to fiat currency-issuing governments. European politicians and their supporting bureaucracies are paralysed by a destructive Groupthink that defines policies, which are incapable of restoring and sustaining prosperity. This is because their fundamental macroeconomic assumptions are not ground in reality. The aim here is to outline a new way of thinking about the economy, which demonstrates the actual options and responsibilities that apply to modern governments that issue a fiat currency.

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