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Grexit and Brexit: Rational choice, compatibility, and coercive adaptation

Author

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  • Steven Rosefielde

    (Department of Economics, University of North Carolina at Chapel Hill)

Abstract

This article combines a rational choice framework with an analysis of contemporary European Union institutions to elucidate the causes of Grexit and Brexit. It shows that the sustainability of the EU in part or whole in “normal” times depends on member compatibility and coercive adaptation. If members share the same values, including a common vision of transnational governance and a commitment to mutual support (solidarity), the EU should be able to stick together through thick and thin. If, on the contrary, members hold incompatible outlooks on the distribution of transnational powers and solidarity, then the EU will be vulnerable to dismemberment. The EU today is prone to disunion because its members no longer share a common view of mutually acceptable transnational government and policy; powerful members insist upon bending recalcitrant members to their will (coercive adaptation), and participants hold contradictory attitudes towards solidarity on a variety of issues. Winston Churchill and Robert Schuman in the late 1940s hoped that their post-war Europe project would be something more than a “single market”; that it would become the cornerstone of European peace. They appreciated the value of cooperative economy, but considered material benefits icing on the cake. Brexit and Grexit are best seen in this larger perspective underscoring the wisdom of conciliation.

Suggested Citation

  • Steven Rosefielde, 2016. "Grexit and Brexit: Rational choice, compatibility, and coercive adaptation," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 66(supplemen), pages 77-91, December.
  • Handle: RePEc:aka:aoecon:v:66:y:2016:i:supplement1:p:77-91
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    File URL: http://www.akademiai.com/doi/pdf/10.1556/032.2016.66.S1.5
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    Cited by:

    1. Bruno Dallago & Stephen Rosefielde, 2019. "The strange fate of Brexit and Grexit and the Eurozone: Integration and disintegration," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 13(1), March.
    2. Steven Rosefielde, 2019. "Salvaging the EU: Two-Speed or Dual-Track Reform?," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 13(2), June.

    More about this item

    Keywords

    Brexit; Grexit; European Union; euro; eurosceptism;
    All these keywords.

    JEL classification:

    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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