IDEAS home Printed from https://ideas.repec.org/p/par/dipeco/2015-ef02.html
   My bibliography  Save this paper

Democracy or Euro: who will surrender?

Author

Listed:
  • A. Lanzavecchia
  • E. Pavarani

Abstract

This article offers insights into the Eurozone, one of the most challenging experiments towards market and political integration through a single monetary unit - namely Euro. However, whereas markets might be fully integrated even without a common European currency, Euro and its functional institutions are shrinking sovereignty within member states. Today the Eurozone records the lowest percentage of growth in the world; it is an island of stagnation, deflation and high unemployment rate. Six years after the beginning of the crisis, most of the European countries have not yet recovered the value of GDP recorded in 2008. Dani Rodrik’s trilemma states that democracy, national sovereignty and global economic integration are mutually incompatible. Yet, the European Union is even shrinking both democracy and national sovereignty towards a global economic integration. Consequently, either democracy shall raise and abort such political project or Euro will shrink democracy to village governance level only.

Suggested Citation

  • A. Lanzavecchia & E. Pavarani, 2015. "Democracy or Euro: who will surrender?," Economics Department Working Papers 2015-EF02, Department of Economics, Parma University (Italy).
    • Handle: RePEc:par:dipeco:2015-ef02
    as

    Download full text from publisher

    File URL: http://www.swrwebeco.unipr.it/RePEc/pdf/III_2015-02.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alberto Bagnai & Christian Alexander Mongeau Ospina, 2014. "The impact of an exchange rate realignment on the trade balance: Euro vs. national currency - Some preliminary results with a/simmetrie model of the Italian economy," a/ Policy Briefs Series 1401, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
    2. Alberto Bagnai & Christian Alexander Mongeau Ospina, 2014. "The Impact of an Exchange Rate Realignment on the Italian Trade Balance: Euro vs. National Currency," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot GmbH, Berlin, vol. 60(4), pages 273-291.
    3. Lars Jonung & Eoin Drea, 2009. "The euro: It can't happen, It's a bad idea, It won't last. US economists on the EMU, 1989-2002," European Economy - Economic Papers 2008 - 2015 395, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    Full references (including those not matched with items on IDEAS)

    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. Frankel, Jeffrey, 2015. "The euro crisis: Where to from here?," Journal of Policy Modeling, Elsevier, vol. 37(3), pages 428-444.
    2. Otmar Issing, 2010. "It Has Happened—And It Will Continue to Succeed," Econ Journal Watch, Econ Journal Watch, vol. 7(1), pages 66-72, January.
    3. Steve H. Hanke, 2010. "Reflections on Currency Reform and the Euro," Econ Journal Watch, Econ Journal Watch, vol. 7(1), pages 61-66, January.
    4. Michael D. Bordo & Lars Jonung & Agnieszka Markiewicz, 2013. "A Fiscal Union for the Euro: Some Lessons from History ," CESifo Economic Studies, CESifo, vol. 59(3), pages 449-488, September.
    5. Sergio Cesaratto, 2013. "Harmonic and Conflict Views in International Economic Relations: a Sraffian View," Palgrave Macmillan Books, in: Enrico Sergio Levrero & Antonella Palumbo & Antonella Stirati (ed.), Sraffa and the Reconstruction of Economic Theory: Volume Two, chapter 10, pages 242-264, Palgrave Macmillan.
    6. Ludger Schuknecht & Philippe Moutot & Philipp Rother & Jürgen Stark, 2011. "The Stability and Growth Pact: Crisis and Reform," CESifo DICE Report, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(3), pages 10-18, October.
    7. Alban Mathieu, 2021. "Frankel and Rose’s Introduction to the Endogeneity of Optimality: A Model Limited to the European Monetary Experience," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 299-314, July.
    8. John Phelan, 2015. "The Road Not Taken: A Comparison Between the Hard ECU and the Euro," Economic Affairs, Wiley Blackwell, vol. 35(3), pages 397-415, October.
    9. Dumitriu, Ramona & Stefanescu, Răzvan, 2020. "Iluzii financiare, Partea întâi [Financial Illusions, Part 1]," MPRA Paper 101201, University Library of Munich, Germany, revised 17 Jun 2020.
    10. Soós, Károly Attila, 2023. "Paul De Grauwe: Economics of Monetary Union. Oxford University Press, Oxford, 2022, 320 o [Paul De Grauwe: Economics of Monetary Union. Oxford University Press, Oxford, 2022, 320 p]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 1173-1187.
    11. Gibson, Heather D. & Palivos, Theodore & Tavlas, George S., 2014. "The Crisis in the Euro Area: An Analytic Overview," Journal of Macroeconomics, Elsevier, vol. 39(PB), pages 233-239.
    12. Stefan Kawalec, 2015. "The permanent necessity to undervalue the euro endangers Europe’s trade relations," a/ Working Papers Series 1509, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
    13. repec:ces:ifodic:v:9:y:2011:i:3:p:16750160 is not listed on IDEAS
    14. Ludger Schuknecht & Philippe Moutot & Philipp Rother & Jürgen Stark, 2011. "The Stability and Growth Pact: Crisis and Reform," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(03), pages 10-17, October.
    15. Klaus Regling & Servaas Deroose & Reinhard Felke & Paul Kutos, 2010. "The Euro After Its First Decade : Weathering the Financial Storm and Enlarging the Euro Area," Governance Working Papers 22817, East Asian Bureau of Economic Research.
    16. Alberto Bagnai & Christian Alexander Mongeau Ospina, 2014. "The a/simmetrie annual macroeconometric model of the Italian economy: structure and properties," a/ Working Papers Series 1405, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
    17. Miguel Otero-Iglesias, 2015. "Stateless Euro: The Euro Crisis and the Revenge of the Chartalist Theory of Money," Journal of Common Market Studies, Wiley Blackwell, vol. 53(2), pages 349-364, March.
    18. Frankel, Jeffrey, 2013. "The Future of the Currency Union," Working Paper Series rwp13-015, Harvard University, John F. Kennedy School of Government.
    19. Lauren Peritz & Ryan Weldzius & Ronald Rogowski & Thomas Flaherty, 2022. "Enduring the great recession: Economic integration in the European Union," The Review of International Organizations, Springer, vol. 17(1), pages 175-203, January.
    20. Slawomir Franek & Marta Postula, 2020. "Does Eurozone Membership Strengthen the Significance of Fiscal Instruments?," Annals of Economics and Finance, Society for AEF, vol. 21(1), pages 131-151, May.
    21. Rostagno, Massimo & Altavilla, Carlo & Carboni, Giacomo & Lemke, Wolfgang & Motto, Roberto & Saint Guilhem, Arthur & Yiangou, Jonathan, 2019. "A tale of two decades: the ECB’s monetary policy at 20," Working Paper Series 2346, European Central Bank.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:par:dipeco:2015-ef02. 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: Andrea Lasagni (email available below). General contact details of provider: https://edirc.repec.org/data/feparit.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.