In this paper we argue that strong political economy forces explain the rush of the EU to expand eastwards. We use a model of vertical product differentiation in order to claim that technologically- advanced EU firms (residing in high-income member countries) prefer a mutual market-opening with...

why banks must be supervised? -- How that all come to be? -- Big Depression – events forcing the regulator’s hand -- Great recession- the ugly daughter of deregulation -- The asymmetry -- How can supervision prevent financial crises? .