The Political Economy of the Euro Crisis

Comparative Political Studies

Volumn 49, Issue 7, 2016, Pages 811-840

  Copelovitch, Mark ^a   Frieden, Jeffry ^b   Walter, Stefanie ^c  

^a UNIVERSITY OF WISCONSIN MADISON   (United States)

^b HARVARD UNIVERSITY   (United States)

^c UNIVERSITY OF ZURICH   (Switzerland)

Author keywords

economic policy; EU politics and policy; European Monetary Union; Eurozone crisis; financial crisis; globalization; political economy

Indexed keywords

EID: 84965099039     PISSN: 00104140     EISSN: 15523829     Source Type: Journal    
DOI: 10.1177/0010414016633227     Document Type: Article

References (91)

1. A.AlesinaA.Drazen (1991). Why are stabilizations delayed?American Economic Review, 81, 1170-1188.
2. R.BaldwinT.BeckA.Bénassy-QuéréO.BlanchardG.CorsettiP.de GrauweB.W..di Mauro (2015). Rebooting the Eurozone: Step 1—Agreeing a crisis narrative (CEPR Policy Insight, 85). Retrieved from http://cepr.org/sites/default/files/policy_insights/PolicyInsight85.pdf
3. T.BayoumiB.Eichengreen (1992, January). Shocking aspects of European monetary unification (NBER Working Paper No., 3949). Cambridge MA: National Bureau of Economic Research. Retrieved from http://www.nber.org/papers/w3949
4. D.H.Bearce (2003). Societal preferences, partisan agents, and monetary policy outcomes. International Organization, 57, 373-410.
5. D.H.BearceM.Hallerberg (2011). Democracy and de facto exchange rate regimes. Economics & Politics, 23, 172-194.
6. M.M.BechtelJ.HainmuellerY.Margalit (2014). Preferences for international redistribution: The divide over the Eurozone bailouts. American Journal of Political Science, 58, 835-856.
7. P.BellucciM.C.LoboM.S.Lewis-Beck (2012). Economic crisis and elections: The European periphery. Electoral Studies, 31, 469-471.
8. W.BernhardJ.L.BrozW.R.Clark (2002). The political economy of monetary institutions. International Organization, 56, 693-723.
9. W.BernhardD.Leblang (1999). Democratic institutions and exchange-rate commitments. International Organization, 53, 71-97.
10. K.BernothB.Erdogan (2012). Sovereign bond yield spreads: A time-varying coefficient approach. Journal of International Money and Finance, 31, 639-656.
11. K.BernothJ.Von HagenL.Schuknecht (2012). Sovereign risk premiums in the European government bond market. Journal of International Money and Finance, 31, 975-995.
12. C.Bodea (2010). The political economy of fixed exchange rate regimes: The experience of post-communist countries. European Journal of Political Economy, 26, 248-264.
13. J.L.Broz (2002). Political system transparency and monetary commitment regimes. International Organization, 56, 861-887.
14. G.A.Calvo (1998). Capital flows and capital-market crises. The simple economics of sudden stops. Journal of Applied Economics, 1(1), 35-54.
15. W.CarlinD.Soskice (2014). Macroeconomics: Institutions, instability, and the financial system. Oxford, UK: Oxford University Press.
16. M.ChangP.Leblond (2015). All in: Market expectations of Eurozone integrity in the sovereign debt crisis. Review of International Political Economy, 22, 626-655.
17. M.ChinnJ.Frieden (2011). Lost decades: The making of America’s debt crisis and the long recovery. New York, NY: W.W. Norton.
18. J.M.Chwieroth (2009). Capital ideas: The IMF and the rise of financial liberalization. Princeton, NJ: Princeton University Press.
19. W.R.ClarkM.Hallerberg (2000). Mobile capital, domestic institutions, and electorally induced monetary and fiscal policy. American Political Science Review, 94, 323-346.
20. B.Cohen (2008). Introduction to international political economy: An intellectual history. Princeton, NJ: Princeton University Press.
21. M.Copelovitch (2010a). The International Monetary Fund in the global economy. Cambridge, UK: Cambridge University Press.
22. M.Copelovitch (2010b). Master or servant? Common agency and the political economy of IMF lending. International Studies Quarterly, 54, 49-77.
23. M.CopelovitchD.Singer (2008). Financial regulation, monetary policy, and inflation in the industrialized world. Journal of Politics, 70, 663-680.
24. N.Crafts (2013). The Eurozone: If only it were the 1930s. VOX, CEPR’s Policy Portal. Available from http://www.voxeu.org
25. O.CrammeS.B.Hobolt (2014). Democratic politics in a European Union under stress. Oxford, UK: Oxford University Press.
26. P.De Grauwe (2013, February). Design failures in the Eurozone: Can they be fixed? (LSE “Europe in Question” Discussion Paper Series, 57). London: London School of Economics. Retrieved from http://www.lse.ac.uk/europeanInstitute/LEQS%20Discussion%20Paper%20Series/LEQSPaper57.pdf
27. E.DinasI.JuradoN.KonstantinidisS.Walter (2015). Survey evidence from the July 2015 Greek referendum and the September 2015 Greek elections. Unpublished manuscript, Oxford University, Oxford, UK.
28. A.DreherJ.-E.SturmJ.Vreeland (2009). Global horse trading: IMF loans for votes in the United Nations Security Council. European Economic Review, 53, 742-757.
29. A.DreherR.Vaubel (2004). The causes and consequences of IMF conditionality. Emerging Markets Finance & Trade, 40(3), 26-54.
30. K.DysonK.Featherstone (1999). The road to Maastricht: Negotiating economic and monetary union. Oxford, UK: Oxford University Press.
31. B.Eichengreen (1992). Golden fetters: The gold standard and the great depression. New York, NY: Oxford University Press.
32. B.EichengreenJ.Frieden (2001). The political economy of European monetary unification. Boulder, CO: Westview Press.
33. H.EnderleinA.Verdun (2009). EMU’s teenage challenge: What have we learned and can we predict from political science?Journal of European Public Policy, 16, 490-507.
34. Eurobarometer. (2012, November). Public opinion in the European Union (First results from Eurobarometer 78). Brussels, Belgium: European Commission.
35. J.Frieden (1991a). Debt, development, and democracy. Princeton, NJ: Princeton University Press.
36. J.Frieden (1991b). Invested interests: The politics of national economic policies in a world of global finance. International Organization, 45, 425-451.
37. J.Frieden (2002). Real sources of European currency policy: Sectoral interests and European monetary integration. International Organization, 56, 831-860.
38. J.Frieden (2015). The political economy of adjustment and rebalancing. Journal of International Money and Finance, 52, 4-14.
39. J.Frieden (2016). The crisis, the public, and the future of European integration. In (Eds.), After the crisis: Reform, recovery, and growth in Europe. Oxford, UK: Oxford University Press.
40. A.R.GhoshJ.D.OstryM.S.Qureshi (2013). Fiscal space and sovereign risk pricing in a currency union. Journal of International Money and Finance, 34, 131-163.
41. L.GocajS.Meunier (2013). Time will tell: The EFSF, the ESM, and the euro crisis. Journal of European Integration, 35, 239-253.
42. J.Gray (2013). The company states keep: International economic organizations and investor perceptions. Cambridge, UK: Cambridge University Press.
43. S.HaggardS.Maxfield (1996). The political economy of financial internationalization in the developing world. International Organization, 50, 35-68.
44. M.Hall (2008). Democracy and floating exchange rates. International Political Science Review, 29, 73-98.
45. P.A.Hall (2012). The economics and politics of the euro crisis. German Politics, 21, 355-371.
46. P.A.HallR.J.Franzese (1998). Mixed signals: Central bank independence, coordinated wage bargaining, and European Monetary Union. International Organization, 52, 505-535.
47. M.Hallerberg (2002). Veto players and the choice of monetary institutions. International Organization, 56, 775-802.
48. E.HeinsC.de la Porte (2015). The sovereign debt crisis, the EU and welfare state reform. Comparative European Politics, 13, 1-7.
49. L.HoogheG.Marks (2009). A postfunctionalist theory of European integration: From permissive consensus to constraining dissensus. British Journal of Political Science, 39, 1-23.
50. D.IoannouP.LeblondA.Niemann (2015). European integration and the crisis: Practice and theory. Journal of European Public Policy, 22, 155-176.
51. A.JohnstonB.HanckéS.Pant (2014). Comparative institutional advantage in the European sovereign debt crisis. Comparative Political Studies, 47, 1771-1800.
52. L.JonungE.Drea (2010). It can’t happen, it’s a bad idea, it won’t last: US economists on the EMU and the euro, 1989-2002. Econ Journal Watch, 7, 4-52.
53. P.KeeferD.Stasavage (2002). Checks and balances, private information, and the credibility of monetary commitments. International Organization, 56, 751-774.
54. P.B.Kenen (1969). The theory of optimum currency areas: An eclectic view. In (Eds.), Monetary problems of the international economy (pp. 41-60). Chicago, IL: University of Chicago Press.
55. P.R.Lane (2012). The European sovereign debt crisis. The Journal of Economic Perspectives, 26(3), 49-67.
56. D.Leblang (1999). Domestic political institutions and exchange rate commitments in the developing world. International Studies Quarterly, 43, 599-620.
57. D.Leblang (2003). To devalue or to defend? The political economy of exchange rate policy. International Studies Quarterly, 47, 533-559.
58. R.I.McKinnon (1963). Optimum currency areas. American Economic Review, 53, 717-725.
59. K.McNamara (1998). The currency of ideas: Monetary politics in the European union. Ithaca, NY: Cornell University Press.
60. G.MenzM.Smith (2013). Redefining European economic governance [Special issue]. Journal of European Integration, 35, 195-373.
61. A.ModyD.Sandri (2012). The Eurozone crisis: How banks and sovereigns came to be joined at the hip. Economic Policy, 27(70), 199-230.
62. L.Mosley (2003). Global capital and national governments. New York, NY: Cambridge University Press.
63. R.Mundell (1961). A theory of optimum currency areas. American Economic Review, 51, 657-664.
64. R.Mundell (1963). Capital mobility and stabilization policy under fixed and flexible exchange rates. Canadian Journal of Economics and Political Science, 29, 475-485.
65. M.Obstfeld (2013). Finance at center stage: Some lessons of the euro crisis (CEPR Discussion Paper DP9415). Retrieved from http://ssrn.com/abstract=2247275
66. A.O’Mahony (2011). Engineering good times: Fiscal manipulation in a global economy. British Journal of Political Science, 41, 315-340.
67. T.B.Pepinsky (2009). Economic crises and the breakdown of authoritarian regimes: Indonesia and Malaysia in comparative perspective (1st ed.). Cambridge, UK: Cambridge University Press.
68. J.Pisani-Ferry (2012). The euro crisis and the new impossible trinity (Bruegel Policy Contribution). Brussels: Bruegel. Retrieved from http://www.econstor.eu/bitstream/10419/72121/1/683140442.pdf
69. D.P.QuinnA.M.Toyoda (2007). Ideology and voter preferences as determinants of financial globalization. American Journal of Political Science, 51, 344-363.
70. C.ReinhartK.Rogoff (2010). This time is different: Eight centuries of financial folly. Princeton, NJ: Princeton University Press.
71. S.J.RickardT.L.Caraway (2014). International negotiations in the shadow of national elections. International Organization, 68, 701-720.
72. D.Rodrik (2011). The globalization paradox: Democracy and the future of the world economy. New York, NY: W.W. Norton.
73. W.Sandholtz (1993). Choosing union: Monetary politics and Maastricht. International Organization, 47, 1-39.
74. T.SattlerS.Walter (2010). Monetary credibility vs. voter approval: Political institutions and exchange-rate stabilization during crises. Economics & Politics, 22, 392-418.
75. S.Satyanath (2006). Globalization, politics, and financial turmoil: Asia’s banking crisis. Cambridge, UK: Cambridge University Press.
76. F.Scharpf (2013). Monetary union, fiscal crisis and the disabling of democratic accountability. In (Eds.), Politics in the age of austerity (pp. 108-142). Cambridge, UK: Polity Press.
77. B.Simmons (1994). Who adjusts? Domestic sources of foreign economic policy during the interwar years. Princeton, NJ: Princeton University Press.
78. B.SimmonsZ.Elkins (2004). The globalization of liberalization: Policy diffusion in the international political economy. American Political Science Review, 98, 171-189.
79. D.Singer (2004). Capital rules: The domestic politics of international regulatory harmonization. International Organization, 58, 531-565.
80. D.Steinberg (2015). Demanding devaluation: Exchange rate politics in the developing world. Ithaca, NY: Cornell University Press.
81. W.Streeck (2011a). The crisis in context: Democratic capitalism and its contradictions (Max-Planck-Institut für Gesellschaftsforschung Discussion Paper No. 11/15).
82. W.Streeck (2011b). Taking capitalism seriously: Towards an institutionalist approach to contemporary political economy. Socio-Economic Review, 9, 137-167.
83. L.H.Summers (2014). U.S. economic prospects: Secular stagnation, hysteresis, and the zero lower bound. Business Economics, 49, 65-73.
84. S.Thacker (1999). The high politics of IMF lending. World Politics, 52, 38-75.
85. J.TosunA.WetzelG.Zapryanova (2014). The EU in crisis: Advancing the debate. Journal of European Integration, 36, 195-211.
86. S.UsherwoodN.Startin (2013). Euroscepticism as a persistent phenomenon. Journal of Common Market Studies, 51, 1-16.
87. J.R.Vreeland (2003). The IMF and economic development. Cambridge, UK: Cambridge University Press.
88. S.Walter (2008). A new approach for determining exchange-rate level preferences. International Organization, 62, 405-438.
89. S.Walter (2013). Financial crises and the politics of macroeconomic adjustment. Cambridge, UK: Cambridge University Press.
90. C.WihlborgT.WillettN.Zhang (2010). The euro debt crisis. It isn’t just fiscal. World Economics, 11(4), 51-77.
91. World Bank. (2014). World development indicators. Washington, DC: Author.