IDEAS home Printed from https://ideas.repec.org/a/pes/ieroec/v6y2015i3p23-43.html
   My bibliography  Save this article

The Political Economy Of Staying Outside The Eurozone: Poland And Sweden Compared

Author

Listed:
  • Slawomir Czech

    (University of Economics in Katowice)

Abstract

This paper deals with the issue of political constraints put on economic policies that derive from the distribution of power in democratic societies. Poland and Sweden are both euro-outsiders that are obliged to adopt the euro, but recent developments within the Eurozone and related to the 2008+ crisis engendered widespread reluctance among the public to give up national currencies. Within a short time, the general support for the euro turned strongly negative, making it a grave challenge for politicians to pursue the adoption of the common currency. On this background, we reflect on the alleged correspondence between these two countries that would allow to follow similar policies toward euro introduction. We point to the idiosyncrasy of the Swedish case that makes it virtually impossible to emulate its policies by a country like Poland with very different long-term goals and starting conditions. By doing so, we highlight the context of policymaking that seems crucial to a successful art of political economy.

Suggested Citation

  • Slawomir Czech, 2015. "The Political Economy Of Staying Outside The Eurozone: Poland And Sweden Compared," Oeconomia Copernicana, Institute of Economic Research, vol. 6(3), pages 23-43, September.
    • Handle: RePEc:pes:ieroec:v:6:y:2015:i:3:p:23-43
    DOI: 10.12775/OeC.2015.019
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.12775/OeC.2015.019
    Download Restriction: no
    File URL: https://libkey.io/10.12775/OeC.2015.019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kolasa, Marcin, 2009. "Structural heterogeneity or asymmetric shocks? Poland and the euro area through the lens of a two-country DSGE model," Economic Modelling, Elsevier, vol. 26(6), pages 1245-1269, November.
    2. J. James Reade & Ulrich Volz, 2009. "Too Much to Lose, or More to Gain? Should Sweden Join the Euro?," Economics Series Working Papers 442, University of Oxford, Department of Economics.
    3. Lars Jonung, 2004. "The Political Economy of Monetary Unification: The Swedish Euro Referendum of 2003," Cato Journal, Cato Journal, Cato Institute, vol. 24(1-2), pages 123-149, Spring/Su.
    4. Jakub Borowski, 2004. "Costs and Benefits of Poland's EMU Accession: a Tentative Assessment," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 46(1), pages 127-145, March.
    5. Brzoza-Brzezina, Michał & Makarski, Krzysztof & Wesołowski, Grzegorz, 2014. "Would it have paid to be in the eurozone?," Economic Modelling, Elsevier, vol. 41(C), pages 66-79.
    6. Lars Calmfors & Simon Wren-Lewis, 2011. "What should fiscal councils do? [Fiscal policy when monetary policy is tied to the mast]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 26(68), pages 649-695.
    7. Jupille, Joseph & Leblang, David, 2007. "Voting for Change: Calculation, Community, and Euro Referendums," International Organization, Cambridge University Press, vol. 61(4), pages 763-782, October.
    8. Krzysztof MAKARSKI & Michal GRADZEWICZ, 2009. "The Macroeconomic Effects of Losing Autonomous Monetary Policy after the Euro Adoption in Poland," EcoMod2009 21500061, EcoMod.
    9. Ulf Söderström, 2008. "Re-Evaluating Swedish Membership in EMU: Evidence from an Estimated Model," NBER Working Papers 14519, National Bureau of Economic Research, Inc.
    10. repec:cto:journl:v:24:y:2004:i:1-2:p:123-149 is not listed on IDEAS
    11. Sara Binzer Hobolt & Patrick Leblond, 2009. "Is My Crown Better than Your Euro?," European Union Politics, , vol. 10(2), pages 202-225, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. BELAŞCU Lucian, 2016. "The Case of “EMU-Outsiders”: Economic and Political Considerations," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michaël Aklin & Eric Arias & Julia Gray, 2022. "Inflation concerns and mass preferences over exchange‐rate policy," Economics and Politics, Wiley Blackwell, vol. 34(1), pages 5-40, March.
    2. Milan Deskar-Škrbić & Davor Kunovac, 2020. "Twentieth Anniversary of the Euro: Why are Some Countries Still Not Willing to Join? Economists’ View," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 62(2), pages 242-262, June.
    3. Torój, Andrzej, 2017. "Managing external macroeconomic imbalances in the EU: the welfare cost of scoreboard-based constraints," Economic Modelling, Elsevier, vol. 61(C), pages 293-311.
    4. Brzoza-Brzezina, Michał & Makarski, Krzysztof & Wesołowski, Grzegorz, 2014. "Would it have paid to be in the eurozone?," Economic Modelling, Elsevier, vol. 41(C), pages 66-79.
    5. BELAŞCU Lucian, 2016. "The Case of “EMU-Outsiders”: Economic and Political Considerations," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    6. Joanna Osińska, 2013. "Postawy wobec euro i ich determinanty," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 10, pages 39-67.
    7. Michał Brzoza-Brzezina & Pascal Jacquinot & Marcin Kolasa, 2014. "Can We Prevent Boom-Bust Cycles During Euro Area Accession?," Open Economies Review, Springer, vol. 25(1), pages 35-69, February.
    8. Andrzej Torój, 2010. "Rationality of Expectations: Another OCA Criterion? A DSGE Analysis," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 2(3), pages 205-252, June.
    9. Aneta Hryckiewicz & Lukasz Kozlowski, 2020. "Should we be afraid of powerful banks? The trade-off between bank power and liquidity buffer," Bank i Kredyt, Narodowy Bank Polski, vol. 51(4), pages 437-466.
    10. Torój, Andrzej, 2015. "Macroeconomic Imbalance Procedure in the EU: a Welfare Evaluation," MF Working Papers 22, Ministry of Finance in Poland.
    11. Daniel Naurin & Rutger Lindahl, 2010. "Out in the cold? Flexible integration and the political status of Euro opt-outs," European Union Politics, , vol. 11(4), pages 485-509, December.
    12. Łukasz Goczek & Dagmara Mycielska, 2013. "Ready for euro? Empirical study of the actual monetary policy independence in Poland," Working Papers 2013-13, Faculty of Economic Sciences, University of Warsaw.
    13. Sara Binzer Hobolt & Patrick Leblond, 2009. "Is My Crown Better than Your Euro?," European Union Politics, , vol. 10(2), pages 202-225, June.
    14. Daras, Tomasz & Hagemejer, Jan, 2008. "The long run-effects of the Poland's accession to the eurozone. Simulation using POLDYN - a dynamic computable general equilibrium model," MPRA Paper 15760, University Library of Munich, Germany.
    15. Torój, Andrzej, 2010. "Adjustment capacity in a monetary union: a DSGE evaluation of Poland and Slovakia," MF Working Papers 4, Ministry of Finance in Poland, revised 11 May 2010.
    16. Brzoza-Brzezina, Michał & Makarski, Krzysztof, 2011. "Credit crunch in a small open economy," Journal of International Money and Finance, Elsevier, vol. 30(7), pages 1406-1428.
    17. Hobolt, Sara B. & Wratil, Christopher, 2015. "Public opinion and the crisis: the dynamics of support for the euro," LSE Research Online Documents on Economics 60788, London School of Economics and Political Science, LSE Library.
    18. Allam, Miriam S. & Goerres, Achim, 2008. "Adopting the euro in post-communist countries: An analysis of the attitudes toward the single currency," MPIfG Discussion Paper 08/1, Max Planck Institute for the Study of Societies.
    19. Ignacio Jurado & Stefanie Walter & Nikitas Konstantinidis & Elias Dinas, 2020. "Keeping the euro at any cost? Explaining attitudes toward the euro-austerity trade-off in Greece," European Union Politics, , vol. 21(3), pages 383-405, September.
    20. Torój, Andrzej, 2012. "Excessive Imbalance Procedure in the EU: a Welfare Evaluation," MF Working Papers 11, Ministry of Finance in Poland, revised 03 Feb 2012.

    More about this item

    Keywords

    euro adoption; systemic idiosyncrasy; euro outsider; political constraints; power distribution;
    All these keywords.

    JEL classification:

    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pes:ieroec:v:6:y:2015:i:3:p:23-43. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adam P. Balcerzak (email available below). General contact details of provider: https://edirc.repec.org/data/ibgtopl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.