Crises and Policy Responses within the Political Trilemma: Europe, 1929-1936 and 2008-2011
AbstractThe recent debate on the Eurozone failed to appreciate a particular characteristic of European crisis experiences, namely their fundamentally political character. To make my argument, I borrow from Dani Rodrik (2000) the framework of a “political trilemma” between cross-border economic integration, national institutions and democracy (in the sense of mass politics) and discuss its relation to the more commonly known “macroeconomic trilemma” as well as some limitations of the framework. The recent experience of a European debt crisis and the experience of Europe’s Great Depression can be interpreted as a “political trilemma”: both reflect the problem of designing effective policy responses to major economic shocks within the environment of deep economic integration across political boundaries and the regime choices that this involves. Within this framework I highlight some aspects of the 1930s that are informative to the policy choices in Europe today. Once we accept that some policy choices should be avoided, attention should be shifted to the remaining options and the obstacles that prevent their implementation, notably the challenge to transform democracy beyond national borders.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Historical Economics Society (EHES) in its series Working Papers with number 0016.
Length: 35 pages
Date of creation: Apr 2012
Date of revision:
political trilemma; great depression; euro-crisis;
Find related papers by JEL classification:
- F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
- F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
- N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-23 (All new papers)
- NEP-EEC-2012-04-23 (European Economics)
- NEP-HIS-2012-04-23 (Business, Economic & Financial History)
- NEP-HPE-2012-04-23 (History & Philosophy of Economics)
- NEP-OPM-2012-04-23 (Open Economy Macroeconomics)
- NEP-POL-2012-04-23 (Positive Political Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nikolaus Wolf, 2008.
"Scylla and Charybdis. Explaining Europe’s Exit from Gold, January 1928 – December 1936,"
CESifo Working Paper Series
2271, CESifo Group Munich.
- Wolf, Nikolaus, 2008. "Scylla and Charybdis. Explaining Europe's exit from gold, January 1928-December 1936," Explorations in Economic History, Elsevier, vol. 45(4), pages 383-401, September.
- Wolf, Nikolaus, 2008. "Scylla and Charybdis. Explaining Europe’s Exit from Gold, January 1928- December 1936," CEPR Discussion Papers 6685, C.E.P.R. Discussion Papers.
- Reinhart, Carmen & Calvo, Guillermo, 2002.
"Fear of floating,"
14000, University Library of Munich, Germany.
- Ritschl Albrecht, 2003. "Hat das Dritte Reich wirklich eine ordentliche Beschäftigungspolitik betrieben?," Jahrbuch für Wirtschaftsgeschichte / Economic History Yearbook, De Gruyter, vol. 44(1), pages 125-140, June.
- Sicsic, Pierre, 1992. "Was the franc poincare deliberately undervalued?," Explorations in Economic History, Elsevier, vol. 29(1), pages 69-92, January.
- Reinhart, Carmen & Calvo, Guillermo, 2001.
"Fixing for your life,"
13873, University Library of Munich, Germany.
- Ulrich Pfister & Jana Riedel & Martin Uebele, 2012.
"Real Wages and the Origins of Modern Economic Growth in Germany, 16th to 19th Centuries,"
0017, European Historical Economics Society (EHES).
- Uebele, Martin & Pfister, Ulrich & Riedel, Jana, 2012. "Real wages and the origins of modern economic growth in Germany, 16th to 19th centuries," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62076, Verein für Socialpolitik / German Economic Association.
- Francisco Comín, 2012. "Default, rescheduling and inflation : debt crisis in Spain during the 19th and 20th centuries," Working Papers in Economic History wp12-06, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paul Sharp).
If references are entirely missing, you can add them using this form.