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On the new economic philosophy of crisis management in the European Union

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  • László Csaba

    ()
    (Central European University and Corvinus University of Budapest, Budapest, Hungary)

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    Abstract

    This essay attempts to go beyond presenting the bits and pieces of still ongoing crisis management in the EU. Instead it attempts at finding the ‘red thread’ behind a series of politically improvised decisions. Our fundamental research question asks whether basic economic lessons learned in the 1970s are still valid. Namely, that a crises emanating from either structural or regulatory weaknesses cannot and should not be remedied by demand management. Our second research question is the following: Can lacking internal commitment and conviction in any member state be replaced or substituted by external pressure or formalized procedures and sanctions? Under those angles we analyze the project on establishing a fiscal and banking union in the EU, as approved by the Council in December 2012.

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    Bibliographic Info

    Article provided by Akadémiai Kiadó, Hungary in its journal Society and Economy.

    Volume (Year): 35 (2013)
    Issue (Month): 2 (August)
    Pages: 121-139

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    Handle: RePEc:aka:soceco:v:35:y:2013:i:2:p:121-139

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    Related research

    Keywords: banking union; fiscal federalism; European Monetary System; supranationalism; supervision of banks;

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