Since 2014
Reconsidering the economic and political reasons of the euro area crisis: Diverging fundamentals or self-fulfilling expectations?
PSL Quarterly Review
View Archive Info| Field | Value | |
| Title |
Reconsidering the economic and political reasons of the euro area crisis: Diverging fundamentals or self-fulfilling expectations?
|
|
| Creator |
Della Posta, Pompeo; Università di Pisa
|
|
| Subject |
Euro crisis, Fundamentals, Self-fulfilling expectations, Fiscal solidarity, Monetary solidarity
E58, E65, F36, F45, G01 |
|
| Description |
This article nests the explanations of the euro crisis in terms of economic, political and institutional causes within the diverging fundamentals vs. self-fulfilling expectations debate. It argues that explanations based on fundamental divergences refer to a subset of economic variables only, while those based on self-fulfilling expectations refer to political and institutional variables. However, since there is no reason not to include the latter among the fundamental variables of an economy, there is no need to refer to negative self-fulfilling expectations as an explanation for the crisis. Finally, the role played by political and institutional variables, namely federal and monetary solidarity, is formalized in a simple model of diverging fundamentals that goes beyond the consideration of economic variables only. JEL Classification: E58, E65, F36, F45, G01
|
|
| Publisher |
Economia civile
|
|
| Contributor |
—
|
|
| Date |
2017-09-29
|
|
| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
|
| Format |
application/pdf
|
|
| Identifier |
http://annalidibotanica.uniroma1.it/index.php/PSLQuarterlyReview/article/view/13868
10.13133/2037-3643_70.282_3 |
|
| Source |
PSL Quarterly Review; Vol 70, No 282 (2017): September; 283-310
PSL Quarterly Review; Vol 70, No 282 (2017): September; 283-310 2037-3643 ISSN 2037-3635 |
|
| Language |
eng
|
|
| Relation |
http://annalidibotanica.uniroma1.it/index.php/PSLQuarterlyReview/article/view/13868/pdf_12
|
|
| Rights |
Copyright (c) 2017 Pompeo Della Posta
http://creativecommons.org/licenses/by-nc-nd/4.0 |
|