Arbeitspapier

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.

Language
Englisch

Bibliographic citation
Series: MPIfG Discussion Paper ; No. 13/15

Classification
Sozialwissenschaften, Soziologie, Anthropologie

Event
Geistige Schöpfung
(who)
Scharpf, Fritz W.
Event
Veröffentlichung
(who)
Max Planck Institute for the Study of Societies
(where)
Cologne
(when)
2013

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Scharpf, Fritz W.
  • Max Planck Institute for the Study of Societies

Time of origin

  • 2013

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