IDEAS home Printed from https://ideas.repec.org/a/bla/jcmkts/v47y2009i5p1085-1105.html
   My bibliography  Save this article

Output Legitimacy and the Global Financial Crisis: Perceptions Matter

Author

Listed:
  • ERIK JONES

Abstract

The global economic crisis has sapped support for the euro and lowered trust in the European Central Bank (ECB). In doing so, it has also exposed a weakness in the ‘output‐oriented legitimation’ of Europe's economic and monetary union. The common monetary policy and single currency have to be perceived as working if they are to maintain popular acceptance. Whether they actually work is less important than this perception. This raises the prospect that no matter how successful the ECB is in responding to moments of crisis, public opinion may begin to reflect the perception that it has failed. Indeed, the greater the uncertainty experienced during the crisis, the more likely it is that such negative perceptions will predominate. Worse, there is very little that the ECB can do to change popular perceptions or to create new channels for input‐oriented legitimation without jeopardizing the credibility of its commitment to price stability or its reputation for political independence.

Suggested Citation

  • Erik Jones, 2009. "Output Legitimacy and the Global Financial Crisis: Perceptions Matter," Journal of Common Market Studies, Wiley Blackwell, vol. 47(5), pages 1085-1105, November.
    • Handle: RePEc:bla:jcmkts:v:47:y:2009:i:5:p:1085-1105
    DOI: 10.1111/j.1468-5965.2009.02036.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-5965.2009.02036.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-5965.2009.02036.x?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. Jones, Erik, 2009. "They have no idea… decision-making and policy change in the global financial crisis," LSE Research Online Documents on Economics 53365, London School of Economics and Political Science, LSE Library.
    2. Andreas Follesdal & Simon Hix, 2006. "Why There is a Democratic Deficit in the EU: A Response to Majone and Moravcsik," Journal of Common Market Studies, Wiley Blackwell, vol. 44, pages 533-562, September.
    3. Blank, Stephen, 1977. "Britain: the politics of foreign economic policy, the domestic economy, and the problem of pluralistic stagnation," International Organization, Cambridge University Press, vol. 31(4), pages 673-721, October.
    4. Paul De Grauwe, 2014. "What Have We Learnt about Monetary Integration since the Maastricht Treaty?," World Scientific Book Chapters, in: Exchange Rates and Global Financial Policies, chapter 11, pages 273-296, World Scientific Publishing Co. Pte. Ltd..
    5. Paul De Grauwe, 2006. "What Have we Learnt about Monetary Integration since the Maastricht Treaty?," Journal of Common Market Studies, Wiley Blackwell, vol. 44, pages 711-730, November.
    6. Robert J. Blendon, 1997. "Bridging the Gap between the Public's and Economists' Views of the Economy," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 105-118, Summer.
    7. Andrew Moravcsik, 2002. "Reassessing Legitimacy in the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 40(4), pages 603-624, November.
    8. Hall, Peter A. & Franzese, Robert J., 1998. "Mixed Signals: Central Bank Independence, Coordinated Wage Bargaining, and European Monetary Union," International Organization, Cambridge University Press, vol. 52(3), pages 505-535, July.
    9. Pepermans, Roland & Verleye, Gino, 1998. "A unified Europe? How euro-attitudes relate to psychological differences between countries," Journal of Economic Psychology, Elsevier, vol. 19(6), pages 681-699, December.
    10. Matthew Gabel & Kenneth Scheve, 2007. "Estimating the Effect of Elite Communications on Public Opinion Using Instrumental Variables," American Journal of Political Science, John Wiley & Sons, vol. 51(4), pages 1013-1028, October.
    11. KATHLEEN R. McNAMARA, 2006. "Economic Governance, Ideas and EMU: What Currency Does Policy Consensus Have Today?," Journal of Common Market Studies, Wiley Blackwell, vol. 44, pages 803-821, November.
    12. Andreas Follesdal & Simon Hix, 2006. "Why There is a Democratic Deficit in the EU: A Response to Majone and Moravcsik," Journal of Common Market Studies, Wiley Blackwell, vol. 44(3), pages 533-562, September.
    13. Dolan, Paul & Peasgood, Tessa & White, Mathew, 2008. "Do we really know what makes us happy A review of the economic literature on the factors associated with subjective well-being," Journal of Economic Psychology, Elsevier, vol. 29(1), pages 94-122, February.
    14. Antonides, Gerrit, 2008. "How is perceived inflation related to actual price changes in the European Union?," Journal of Economic Psychology, Elsevier, vol. 29(4), pages 417-432, August.
    15. Johan P. Olsen, 2009. "Democratic government, institutional autonomy and the dynamics of change," ARENA Working Papers 1, ARENA.
    16. Erik Jones, 2009. "They Have No Idea... Decision-making and Policy Change in the Global Financial Crisis," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 4, London School of Economics / European Institute.
    17. KATHLEEN R. McNAMARA, 2006. "Economic Governance, Ideas and EMU: What Currency Does Policy Consensus Have Today?," Journal of Common Market Studies, Wiley Blackwell, vol. 44(4), pages 803-821, November.
    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. Roth, Felix & Jonung, Lars & Nowak-Lehmann D., Felicitas, 2012. "Public Support for the Single European Currency, the Euro, 1990 to 2011. Does the Financial Crisis Matter?," Working Papers 2012:20, Lund University, Department of Economics.
    2. Louis W. Pauly, 2009. "The Old and the New Politics of International Financial Stability," Journal of Common Market Studies, Wiley Blackwell, vol. 47, pages 955-975, November.
    3. Dermot Hodson & Lucia Quaglia, 2009. "European Perspectives on the Global Financial Crisis: Introduction," Journal of Common Market Studies, Wiley Blackwell, vol. 47, pages 939-953, November.
    4. Muireann O'Dwyer, 2022. "Gender and Crises in European Economic Governance: Is this Time Different?," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 152-169, January.
    5. Matúš Mišík, 2013. "How can perception help us to understand the dynamic between EU member states? The state of the art," Asia Europe Journal, Springer, vol. 11(4), pages 445-463, December.
    6. Louis W. Pauly, 2009. "The Old and the New Politics of International Financial Stability," Journal of Common Market Studies, Wiley Blackwell, vol. 47(5), pages 955-975, November.
    7. Daniela Gabor & Cornel Ban, 2016. "Banking on Bonds: The New Links Between States and Markets," Journal of Common Market Studies, Wiley Blackwell, vol. 54(3), pages 617-635, May.
    8. Gros, Daniel & Roth, Felix, 2011. "Do Germans support the euro?," CEPS Papers 6515, Centre for European Policy Studies.
    9. Thomas Otter, 2013. "Crisis and Trust in National and European Union Institutions — Panel Evidence for the EU, 1999 to 2012," EUI-RSCAS Working Papers 31, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    10. Felix Roth & Lars Jonung & Felicitas Nowak-Lehmann D., 2022. "Crisis and Public Support for the Euro, 1990–2014," Contributions to Economics, in: Public Support for the Euro, chapter 0, pages 55-91, Springer.
    11. Erik Jones, 2010. "The Economic Mythology of European Integration," Journal of Common Market Studies, Wiley Blackwell, vol. 48(1), pages 89-109, January.
    12. Fontan, Clément & Goutsmedt, Aurélien, 2023. "The ECB and the inflation monsters: strategic framing and the responsibility imperative (1998-2023)," SocArXiv 92r54, Center for Open Science.
    13. Dermot Hodson & Lucia Quaglia, 2009. "European Perspectives on the Global Financial Crisis: Introduction," Journal of Common Market Studies, Wiley Blackwell, vol. 47(5), pages 939-953, November.
    14. Massoc, Elsa C., 2022. "Climate change versus price stability: How "green" central bankers and members of the European parliament became pragmatic (yet precarious) bedfellows," LawFin Working Paper Series 33, Goethe University, Center for Advanced Studies on the Foundations of Law and Finance (LawFin).
    15. Manuela Moschella & Nicola M Diodati, 2020. "Does politics drive conflict in central banks’ committees? Lifting the veil on the European Central Bank consensus," European Union Politics, , vol. 21(2), pages 183-203, June.
    16. Madelaine Moore & Silke Trommer, 2021. "Critical Europeans in an Age of Crisis: Irish and Portuguese Protesters' EU Perceptions," Journal of Common Market Studies, Wiley Blackwell, vol. 59(2), pages 316-334, March.
    17. Felix Roth & Lars Jonung & Felicitas Nowak-Lehmann D., 2022. "The Enduring Popularity of the Euro throughout the Crisis," Contributions to Economics, in: Public Support for the Euro, chapter 0, pages 169-185, Springer.
    18. Federico M. Ferrara & Donato Masciandaro & Manuela Moschella & Davide Romelli, 2023. "What do politicians think of technocratic institutions? Experimental Evidence on the European Central Bank," BAFFI CAREFIN Working Papers 23201, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    19. Nedelchev, Miroslav, 2015. "Coordination of banking regulation in the EU," MPRA Paper 66073, University Library of Munich, Germany, revised 2015.
    20. Eichler, Stefan & Hielscher, Kai, 2012. "Does the ECB act as a lender of last resort during the subprime lending crisis?: Evidence from monetary policy reaction models," Journal of International Money and Finance, Elsevier, vol. 31(3), pages 552-568.

    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. Erik Jones, 2009. "Output Legitimacy and the Global Financial Crisis: Perceptions Matter," Journal of Common Market Studies, Wiley Blackwell, vol. 47, pages 1085-1105, November.
    2. Richard Hyman & Rebecca Gumbrell-McCormick, 2020. "(How) can international trade union organisations be democratic?," Transfer: European Review of Labour and Research, , vol. 26(3), pages 253-272, August.
    3. Christopher J Williams, 2016. "Issuing reasoned opinions: The effect of public attitudes towards the European Union on the usage of the 'Early Warning System'," European Union Politics, , vol. 17(3), pages 504-521, September.
    4. Petia Kostadinova, 2015. "Improving the Transparency and Accountability of EU Institutions: The Impact of the Office of the European Ombudsman," Journal of Common Market Studies, Wiley Blackwell, vol. 53(5), pages 1077-1093, September.
    5. Scharpf, Fritz W., 2014. "No exit from the euro-rescuing trap?," MPIfG Discussion Paper 14/4, Max Planck Institute for the Study of Societies.
    6. Marianne van de Steeg & Thomas Risse, 2010. "The Emergence of a European Community of Communication - Insights from Empirical Research on the Europeanization of Public Spheres," KFG Working Papers p0015, Free University Berlin.
    7. Emmanuel Sigalas, 2009. "Does ERASMUS Student Mobility promote a EuropeanIdentity?," The Constitutionalism Web-Papers p0036, University of Hamburg, Faculty for Economics and Social Sciences, Department of Social Sciences, Institute of Political Science.
    8. Scharpf, Fritz W., 2012. "Legitimacy intermediation in the multilevel European polity and its collapse in the euro crisis," MPIfG Discussion Paper 12/6, Max Planck Institute for the Study of Societies.
    9. Rauh, Christian, 2022. "Clear messages to the European public? The language of European Commission press releases 1985–2020," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Latest Ar, pages 1-19.
    10. Henrik Scheller & Annegret Eppler, 2014. "European Disintegration – non-existing Phenomenon or a Blind Spot of European Integration Research? Preliminary Thoughts for a Research Agenda," Working Papers of the Vienna Institute for European integration research (EIF) 2, Institute for European integration research (EIF).
    11. Vassilis Monastiriotis & Sotirios Zartaloudis, 2010. "Beyond the crisis: EMU and labour market reform pressures in good and bad times," LEQS – LSE 'Europe in Question' Discussion Paper Series 23, European Institute, LSE.
    12. Dimiter Toshkov, 2011. "Public opinion and policy output in the European Union: A lost relationship," European Union Politics, , vol. 12(2), pages 169-191, June.
    13. Thomas König & Bernd Luig, 2014. "Ministerial gatekeeping and parliamentary involvement in the implementation process of EU directives," Public Choice, Springer, vol. 160(3), pages 501-519, September.
    14. Wagner, Wolfgang, 2007. "Problems of Democratic Control in European Security and Defense Politics – a View from Peace and Conflict Research," Institute of European Studies, Working Paper Series qt65b9q82m, Institute of European Studies, UC Berkeley.
    15. Federica Genovese & Gerald Schneider, 2020. "Smoke with fire: Financial crises and the demand for parliamentary oversight in the European Union," The Review of International Organizations, Springer, vol. 15(3), pages 633-665, July.
    16. Christopher J Williams & Shaun Bevan, 2019. "The effect of public attitudes toward the European Union on European Commission policy activity," European Union Politics, , vol. 20(4), pages 608-628, December.
    17. Jørgen Bølstad, 2015. "Dynamics of European integration: Public opinion in the core and periphery," European Union Politics, , vol. 16(1), pages 23-44, March.
    18. Marianne van de Steeg, 2010. "Emotions, Media Discourse and the Mobilization of Citizens - Conceptual Considerations and a Plausibility," KFG Working Papers p0016, Free University Berlin.
    19. Yvonne Galligan & Sara Clavero, 2008. "Researching gender democracy in the European Union: Challenges and prospects," RECON Online Working Papers Series 5, RECON.
    20. Ganghof, Steffen & Genschel, Philipp, 2007. "Taxation and Democracy in the EU," MPIfG Discussion Paper 07/2, Max Planck Institute for the Study of Societies.

    More about this item

    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:bla:jcmkts:v:47:y:2009:i:5:p:1085-1105. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-9886 .

    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.