Political legitimacy in a non-optimal currency area

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

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

Classification and Topics

• Classification: Sozialwissenschaften, Soziologie, Anthropologie

Contributors, Places and Time

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

Further information

• Handle: http://hdl.handle.net/10419/87733
• Last update: 10.03.2025, 11:42 AM CET