De Grauwe, P;
Ji, Y;
(2018)
Core-Periphery Relations in the Eurozone.
Economists' Voice
, 15
(1)
10.1515/ev-2018-0027.
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De Grauwe _[The Economists Voice] Core-Periphery Relations in the Eurozone.pdf - Published Version Download (1MB) | Preview |
Abstract
We argue that the case for the existence of some deterministic force that condemns countries in the periphery to stay in the periphery indefinitely, is weak. Countries that are in the periphery today can become part of the core and vice versa. We also argue that the long run success of the Eurozone depends on a continuing process of political unification. Political unification is needed because the Eurozone has dramatically weakened the power and legitimacy of nation states without creating a nation at the European level. This is particularly true in the field of stabilization. The political willingness to go in this direction, however, is non-existent today. There is no willingness to provide a common insurance mechanism that would put taxpayers in one country at risk of having to transfer money to other countries. Under those conditions the sovereign bond markets in the Eurozone will continue to be prone to instability.
| Type: | Article |
|---|---|
| Title: | Core-Periphery Relations in the Eurozone |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1515/ev-2018-0027 |
| Publisher version: | https://doi.org/10.1515/ev-2018-0027 |
| Language: | English |
| Additional information: | This is the published version of record. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | budgetary union; core-periphery; Eurozone; monetary union; sovereign bond markets |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > SSEES |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10066676 |
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