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What Is European Integration Really About? A Political Guide for Economists

  • Spolaore, Enrico

    (Tufts University)

Europe’s monetary union is part of a broader process of integration that started in the aftermath of World War II. In this “political guide for economists” we look at the creation of the euro within the bigger picture of European integration. How and why were European institutions established? What are the goals and determinants of European Integration? What is European integration really about? We address these questions from a political-economy perspective, building on ideas and results from the economic literature on the formation of states and political unions. Specifically, we look at the motivations, assumptions, and limitations of the European strategy, initiated by Jean Monnet and his collaborators, of partially integrating policy functions in a few areas, with the expectation that more integration will follow in other areas, in a sort of chain reaction towards an “ever-closer union.” The euro with its current problems is a child of that strategy and its limits

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Paper provided by Competitive Advantage in the Global Economy (CAGE) in its series CAGE Online Working Paper Series with number 141.

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Date of creation: 2013
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Handle: RePEc:cge:wacage:141
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  1. Barry Eichengreen, 2012. "European Monetary Integration with Benefit of Hindsight," Journal of Common Market Studies, Wiley Blackwell, vol. 50(S1), pages 123-136, 03.
  2. Klaus Desmet & Ignacio Ortuño-Ortín & Romain Wacziarg, 2011. "The Political Economy of Linguistic Cleavages," Vives discussion paper series 20, Katholieke Universiteit Leuven, Faculteit Economie en Bedrijfswetenschappen, Vives.
  3. Martin, Philippe & Mayer, Thierry & Thoenig, Mathias, 2005. "Make Trade not War?," CEPR Discussion Papers 5218, C.E.P.R. Discussion Papers.
  4. Enrico Spolaore & Alberto Alesina, 2001. "War, Peace and the Size of Countries," Harvard Institute of Economic Research Working Papers 1937, Harvard - Institute of Economic Research.
  5. Alberto Alesina & Roberto Perotti, 2004. "The European Union: A Politically Incorrect View," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 27-48, Fall.
  6. Frankel, Jeffrey A & Rose, Andrew K, 1998. "The Endogeneity of the Optimum Currency Area Criteria," Economic Journal, Royal Economic Society, vol. 108(449), pages 1009-25, July.
  7. Spolaore, Enrico & Alesina, Alberto, 2006. "Conflict, Defense Spending, and the Number of Nations," Scholarly Articles 4553016, Harvard University Department of Economics.
  8. Barry Eichengreen & Jeffry Frieden, 1993. "The Political Economy Of European Monetary Unification: An Analytical Introduction," Economics and Politics, Wiley Blackwell, vol. 5(2), pages 85-104, 07.
  9. Frieden, Jeffry A., 2002. "Real Sources of European Currency Policy: Sectoral Interests and European Monetary Integration," International Organization, Cambridge University Press, vol. 56(04), pages 831-860, September.
  10. Geoffrey Garrett, 1993. "The Politics Of Maastricht," Economics and Politics, Wiley Blackwell, vol. 5(2), pages 105-123, 07.
  11. Klaus Desmet & Ignacio Ortuno-Ortin & Shlomo Weber , 2008. "Linguistic Diversity and Redistribution ," Working Papers 004-08, International School of Economics at TSU, Tbilisi, Republic of Georgia.
  12. Dyson, Kenneth & Featherstone, Kevin, 1999. "The Road To Maastricht: Negotiating Economic and Monetary Union," OUP Catalogue, Oxford University Press, number 9780198296386, March.
  13. Philip R. Lane, 2012. "The European Sovereign Debt Crisis," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 49-68, Summer.
  14. Perotti, Roberto & Alesina, Alberto, 2004. "The European Union: A Politically Incorrect View," Scholarly Articles 4553004, Harvard University Department of Economics.
  15. Andrew Moravcsik, 1993. "Preferences and Power in the European Community: A Liberal Intergovernmentalist Approach," Journal of Common Market Studies, Wiley Blackwell, vol. 31(4), pages 473-524, December.
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