Political legitimacy in a non-optimal currency area
On the basis of a brief reconstruction of the causes and impacts of the euro crisis, this paper explores, counterfactually and hypothetically, whether the new euro regime, insisting on fiscal austerity and supply-side reforms, could have prevented the rise of the crisis or is able to deal with its disastrous economic and social impact. A comparison with the likely impact of transfer-based Keynesian reflation suggests that, in both cases, economic success is uncertain, while both approaches are likely to produce severely negative side-effects. In light of such dismal policy choices, attempts to politicize European election campaigns are more likely to provoke unmanageable policy conflict than to overcome the input-oriented, democratic deficit of European economic governance.
Year of publication: |
2013
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Authors: | Scharpf, Fritz W. |
Institutions: | Max-Planck-Institut für Gesellschaftsforschung, Max-Planck-Gesellschaft |
Saved in:
freely available
Extent: | application/pdf |
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Series: | MPIfG Discussion Paper. - ISSN 1864-4325. |
Type of publication: | Book / Working Paper |
Notes: | Number 13/15 |
Source: |
Persistent link: https://www.econbiz.de/10010984347
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