The legal regime of the Economic and Monetary Union (EMU) is differentiated in two ways. While the rules on economic union apply with few exceptions to all member states, most Treaty provisions on monetary union are applicable only to those member states that have introduced the common currency. The Treaty on the Functioning of the European Union (TFEU) establishes a system of overlapping competences consisting primarily of measures adopted by the member states. (...) During the initial phase of the European Economic Community (EEC), exchange‐rate fluctuations or flexible exchange rates obstructed the development of a workable capital market. The Treaty of Lisbon provides that the European Union is to establish a monetary union whose currency is the euro. The TFEU provides for institutional and procedural mechanisms aimed at protecting the stability of the common currency. The euro has become a stable and internationally recognized currency. (shrink)

Purpose of the article is to present in two parts the selected aspects of application of monetary policy in the euro area pre and post 2008 as well as insitutional adaptations brought by the EU legislator. Methodology/methods In order to better explain these points, the article relies partially on a comparison with the framework and application of the monetary policy by the Federal Reserve as well as on a historic method when outlining the influence of definition of financial (...) stability from the ECB/eurosystem towards other prominent central banks. Scientific aim The article presents selected aspects of the monetary policy in the part of the EU where single currency was introduced in order to outline state of the art governance structure as well as a certain institutional creativity in application of powers conferred upon the central banks by the Treaty on the Functioning of the European Union and Protocol on the Statute of the European System of Central Banks and of the European Central Bank. The goal is to prove the hypothesis of robustness of the framework and present the limits that can only be pushed further by the legislative power. The conclusions confirm on the one hand that the framework of monetary policy based on strong institutional safeguards such as legislative power and independence is very resilient and can prove efficient and creative enough to stabilise an innovative monetary system, however, on the other hand, validate the hypothesis that certain adaptations can only be performed on the basis of a legislative adaptations. (shrink)

Purpose of the article is to present in two parts the selected aspects of application of monetary policy in the euro area pre and post 2008 as well as insitutional adaptations brought by the EU legislator. Methodology/methods In order to better explain these points, the article relies partially on a comparison with the framework and application of the monetary policy by the Federal Reserve as well as on a historic method when outlining the influence of definition of financial (...) stability from the ECB/eurosystem towards other prominent central banks. Scientific aim The article presents selected aspects of the monetary policy in the part of the EU where single currency was introduced in order to outline state of the art governance structure as well as a certain institutional creativity in application of powers conferred upon the central banks by the Treaty on the Functioning of the European Union and Protocol on the Statute of the European System of Central Banks and of the European Central Bank. The goal is to prove the hypothesis of robustness of the framework and present the limits that can only be pushed further by the legislative power. The conclusions confirm on the one hand that the framework of monetary policy based on strong institutional safeguards such as legislative power and independence is very resilient and can prove efficient and creative enough to stabilise an innovative monetary system, however, on the other hand, validate the hypothesis that certain adaptations can only be performed on the basis of a legislative adaptations. (shrink)

Europe's economic constitution is obviously affected in a very fundamental way. There is every reason to depart from an historical reconstruction of the origins of the economic constitution in the early 1920s, to consider its remarkable renaissance in postwar Germany, and to explore against this background its emigration to the European level of governance as well as its development and metamorphosis in the integration process. This chapter focuses on the Economic and Monetary Union (EMU), which, (...) once hailed as the crowning achievement of Europe's market building and the precursor of a more truly political Union, has become the epicenter of the present crisis. Ordoliberalism and the social‐market economy managed to coexist peacefully and dominated public opinion. The chapter also discusses the practices of Europe's crisis management and the specifics of the governance modes that they are generating. (shrink)

Jacques Delors (1925–2023) was the most influential Europeanist of our time. The close relationship between ideas and pragmatism characterized his social, cultural, and political commitment from his years of militancy in the Confédération Française des Travailleurs Chrétiens and La Vie Nouvelle to his leadership of the European Commission (1985–1995). He pragmatically relaunched the European integration process, especially in the period between the Single European Act (1986) and the Maastricht Treaty (1992), without failing to uphold the values of solidarity, equality, and (...) social justice. He demonstrated a pragmatic approach as soon as he took office at the European Commission and the completion of the Single Market ‘by 1992’ became a concrete goal. He applied Jean Monnet’s theory of the spillover effect to create a virtuous mechanism in the progress of the European design, as demonstrated by the realization of the Economic and Monetary Union– real prelude of the single currency. However, after the birth of the European Union, he called for a federating mechanism to make up for the impotence of intergovernmental cooperation; the ‘new European concert’ was to merge into a ‘Federation of nation-states’ that could be realized through the advantages of the ‘federal approach’ and the preservation of nation-states. (shrink)

'This book is an excellent, theoretically sound and politically relevant reader', Professor Wolfschaefer, Universitat des Bundeswehr, Hamburg 'Up to date complete overview of European monetary and fiscal policy issues. Highly readable, good mix of theory and data' 'I think the book contains a wealth of useful, precise information, presented in a straightforward, readable way in a quintessentially comparative perspective', Dr M Mclean, Royal Holloway University 'Excellent treatment - quite comprehensive, full references, accessible for non-economists', Charlotte Bretherton, Liverpool John Moores (...) Univesity 'A useful addition to student literature', MJ Macmillan, Exeter University 'This is a top class book and does not limit itself to assessing the adequacy of the European political economy to the precepts of advanced monetary economics...This book is an excellent tool for teaching EMU economics, and raising the level of EMU economics in the reaserch-field of international political economy. Students and scholars will appreciate the explicit assessment the authors make of complex economic issues, and their unbiased stance in the study of EMU economic and political interplay.' Miriam L.Campamella, Jean Monnet Professor, Faculty of Political Science, University of Turin. ECSA Review, Winter 2001This textbook offers a fresh and comprehensive examination of European monetary and fiscal policy in the third stage of Economic and Monetary Union. Professors Eijffinger and de Haan give a brief history of European economic integration before the transition to EMU, and continue with a comprehensive analysis of institutions, legislation, and policies. Their analysis includes the functions and goals of the European Central Bank, the Treaty on European Union, the Stability and Growth Pact, and the harmonization of taxes. Other topics discussed include the targets and instruments of European monetary policy, the integration of European financial markets, and the competition between financial institutions in Europe. (shrink)

Politicians around the globe wrangle about how to deal with trade imbalances. In the Eurozone, members running a trade deficit accuse members running a surplus of forcing them into deficit. Yet pol...

Ordoliberalism is often recognized as a powerful ideational source during the Euro crisis; however, there is no pure ordoliberal vision of European integration, and ordoliberal ideas have been used to support both Eurosceptical and Europeanist positions during the crisis. This article reconstructs the ordoliberal theoretical and political debate on European integration and argues that there exist two ordoliberal paradigms of European integration: one bottom-up, whereby the commitment to liberal economic policies at the national level is the precondition for a (...) liberal international order; the other top-down, whereby a liberal international order can help the establishment of a liberal order at the national level. The article compares two ordoliberal visions of the international order: Wilhelm Röpke’s ‘liberalism from below’ (which follows the bottom-up logic) and Viktor Vanberg’s ‘competitive federalism’ (which follows the top-down logic). Then, it explores the ordoliberal political debate on two episodes of the European integration process – the Maastricht Treaty and the Euro crisis – to argue that the bottom-up and the top-down logics underpinned, respectively, Eurosceptical and Europeanist arguments. (shrink)

Corruption involves greed, money, and risky decision-making. We explore the love of money, pay satisfaction, probability of risk, and dishonesty across cultures. Avaricious monetary aspiration breeds unethicality. Prospect theory frames decisions in the gains-losses domain and high-low probability. Pay dissatisfaction (in the losses domain) incites dishonesty in the name of justice at the individual level. The Corruption Perceptions Index, CPI, signals a high-low probability of getting caught for dishonesty at the country level. We theorize that decision-makers adopt avaricious love-of-money (...) aspiration as a lens and frame dishonesty in the gains-losses domain (pay satisfaction-dissatisfaction, Level 1) and high-low probability (CPI, Level 2) to maximize expected utility and ultimate serenity. We challenge the myth: Pay satisfaction mitigates dishonesty across nations consistently. Based on 6500 managers in 32 countries, our cross-level three-dimensional visualization offers the following discoveries. Under high aspiration conditions, pay dissatisfaction excites the highest- (third-highest) avaricious justice-seeking dishonesty in high (medium) CPI nations, supporting the certainty effect. However, pay satisfaction provokes the second-highest avaricious opportunity-seizing dishonesty in low CPI entities, sustaining the possibility effect—maximizing expected utility. Under low aspiration conditions, high pay satisfaction consistently leads to low dishonesty, demonstrating risk aversion—achieving ultimate serenity. We expand prospect theory from a micro and individual-level theory to a cross-level theory of monetary wisdom across 32 nations. We enhance the S-shaped Curve to three 3-D corruption surfaces across three levels of the global economic pyramid, providing novel insights into behavioral economics, business ethics, the environment, and responsibility. (shrink)

The task of this brief presentation is to “establish a dialogue” with Streeck’s text, attempting to fill the hiatus between the answer and the original question that Habermas’ interpretation intended to pose to those wishing to simply dispose of economic and monetary union, ending up by dismantling the political and cultural integration project that inspired the founding fathers. Streeck complains about the “levity” with which many reviewers accepted “as a slogan” the “killer-argument” [Totschlagargument] of the “nostalgic option” (...) provided by the interpretation of his most recent publication and the excuse for his removal from the assembly of “guardians of the Holy Grail”. Now, while acknowledging that in the thesis of the author of Gekaufte Zeit [4] there is no trace of nationalist seeds, which – as Altiero Spinelli observed – “had caused the catastrophe of the two World Wars” [5], Habermas’ critique seizes the unrealistic thoughtlessness of an idea that ends up evoking the system of “European cooperation” between the now impotent national states. We can do without the “specialisation in Europeanism” that according to Streeck, would be required as a preliminary to discuss European policy in the German public arena, but not criticism that is constructive and not defeatist. (shrink)

Functioning markets require a state that will enforce property rights; contracts mediated by money; and the prevalence of a certain type of morality that prevents people from cheating in complex exchange relationships. Monetary exchange abstracts from the personal loyalties that bind small groups together, but at the same time it creates an overarching commitment to norms that bind people more loosely in national societies—as long as monetary exchanges are enforced by the state. In the Soviet Union, conversely, (...) the abolition of money as a universal medium of exchange led both to a deterioration of the norms of impersonal morality and to a loss of state capacity. The state lost control of the economy to informal, personally binding economic networks, and it lost its monopoly on violence in competition with sub-state, personal enforcers of impersonal economic commitments between these networks. Thus, capitalism can be seen as diverting people from norms of loyalty to the members of the relatively small groups of which they are a part toward loyalty to the abstract norms that make it possible for anonymous people to deal with each other reliably. (shrink)

This scientific article is devoted to the research of different aspects and forms of existence of the "European idea". In particular, the idea of "Europe of concentrative circles" and conception of "Europe of variable geometry" which were offered by the prime minister of France E. Balladur. The author focuses on the fact that the problems associated with formation or, in fact, definition of the theoretical foundations of contemporary European integration process have an objective character. This is due to deepening and (...) enlargement of the EU, in the context of changes in theoretical approaches. Treated on the basis of facts the author makes following conclusions: the idea of "Europe of concentrative circles" provides more higher level of integration towards the "center" of the European Community, which would be after the EU political union, a common market and economic and monetary union. Followed by countries of the European Free Trade Association, close to the EU in economic and legal terms. The outer circle is composed of the countries associated with the EU applying for full membership. Fourth, the broadest range - there are the member-states of the OSCE as a common area of European cooperation. (shrink)

Fundamentally, Roman economic history is the study of how and why inhabitants of the Roman world produced, distributed and exchanged goods and services. By understanding the economic actions, events, institutions and products of the Roman world, Roman economic historians come to understand better the Romans themselves: their motivations, values, relationships and identities, among other things. With such a broad remit, today's Roman economic and monetary historians not only scour traditional sources for evidence of Roman commerce, (...) prices, labour, capital and contracts, but they now deploy an ever-broadening range of methodologies, theories and approaches – some of which originate well outside the disciplines of both history and economics. Some Roman economic historians, for example, create, investigate and run simulations, using massive digital archives of data gleaned from ancient evidence. Others compare micro-nutrients in ancient wheat varieties with their modern counterparts to gain a better understanding of diet, nutrition and economic prosperity in Roman cities. Increasingly, specialists in some aspect of the Roman economy find themselves members of internationally funded interdisciplinary teams seeking to understand what Arctic ice cores or North-American tree rings say about money production in the Roman principate. Roman economic historians’ scholarly sprawl has never been more challenging to describe, but I believe it is possible to group recent developments in the field into three overlapping areas: digitisation, particularisation and consilience. (shrink)

In 1996, Belgian politics centered around three major issues: the jobs contract, the 1997 budget and political fallout of the Dutroux affair.During the first months of the year, Prime Minister Dehaene attempted to win support for a comprehensive jobs contract, but the draft agreement was turned down by the Socialist trade union militants. Nevertheless, the measures contained in the agreement were later implemented by the cabinet, without the consent of the employers and organized labor. Together with adjustments made to (...) the social security system and implementation of budgetary measures needed to reach the conditions set by the EU for joining the Economic and Monetary Union, the jobs contract was implemented by means of special powers. The cabinet obtained these special powers from Parliament before the summer recess. After the summer, as a result ofthe Dutroux alfair, the cabinet dealt with legal reform, in the process trying to quell tensions arisen among the law enforcement agencies. (shrink)

Separatism in Belgium does not impose itself, on the conditions that the Belgian Economic and Monetary Union does not force on Flanders toa large a cost, that Wallonia accepts the political prerequisites for thefunctioning of that Union and that federalism really is carried out.Actually these conditions are not fulfilled. Therefore the hypothesis of separatism has to be investigated.For Flanders, separatism economically offers more advantages than disadvantages. The budget equilibrium, the rates of interest, the social conditions and (...) political stability would be improved, without the international solvability seriously affected. (shrink)

In 1995 the newly enlarged European Union has proved to be capable to handle its problems and to take decisions in a large array of issues. The EU tried to cope with unemployment, continued the preparation of the third stage of the Economic and Monetary Union, adopted its 1996 budget decisions relatively smoothly, and intensified its relations with different parts of the world. On the other hand however, enlargement itself is increasingly affecting the Union as (...) it preparing itself for the upcoming accession of some of its Central European and Mediterranean neighbors. The northern member states look with some suspicion at the budgetary consequences and already show a lot of restraint in paying more to the EU-budget, for the sake of their southern counterparts. Some member states are looking for a balanced enlargement in which the eastern enlargement would be counterbalanced by a Mediterranean one, and for a balance in the financial support that is provided by the EU to third countries. The biggest issue is however, the institutional adaptation of the European Union to a new enlargement. The preparations of the 1996 Intergovernmental Conferencethat took place in 1995, have shown however, that this process will be a difficult one. With the 1995 enlargement, the European Union has increased the number ofmember states that perceive the process of European integration primarily as an economic one. This will make institutional adaptations more difficult and risks to paralyze the Common Foreign and Security Policy of the Union even more than it already did in the past few years. Stated differently, 1995 has left a number of question marks on the EU's future. Whether these will disappear soon, 1996 will show. (shrink)

Written by four recognized experts with senior experience in research and government, this text is the first comprehensive survival kit for students and practitioners of economic policy. It is set to become an indispensable resource for everyone involved or interested in modern economic policy. Academic scholars willing to engage in policy discussions and students at graduate or advanced undergraduate levels will find it an essential bridge to the policy world. What makes the book unique is that it combines (...) like no other, facts-based analysis, state-of-the art theories and models, and insights from first-hand policy experience at national and international levels. The book has grown out of ten years of experience teaching economic policy at the graduate level. It provides an intellectually coherent framework to understand the potentialities and limits of economic policy. It addresses positive dimensions, normative dimensions and political-economy constraints. It fills an important gap by reconciling in each major policy area stylized facts of recent economic history, key questions faced by contemporary policymakers, and essential lessons from theory which are captured and explained in a clear, concise, and self-contained way. All major areas of domestic and international policymaking are covered: fiscal policy, monetary policy, international finance and exchange-rate policy, tax policy, and long-term growth policies. The book concludes with a special chapter on the lessons of the financial crisis. The authors are intellectually non-partisan and they draw examples from various countries and experiences; from emerging markets to developing economies, shedding light when necessary on local specificities such as European Union rules and instruments. Economic Policy: Theory and Practice is the essential guide to economic policy in the new post-crisis context. (shrink)

The Eurozone turmoil is a structural crisis of European capitalism associated with the euro as world money. More broadly, the crisis reflects the culmination of tensions which have accumulated over three decades of neoliberalism in Europe. To create a global means of payment and reserve, the European Monetary Union (EMU) brought together countries of uneven and diverging competitiveness. The result was a situation of embedded current account surpluses for the core and deficits for the periphery, contributing to the (...) accumulation of private and public debt. The response to the crisis was dictated by the interests of banks and large bondholders, entailing austerity and attempting to shift the social balance in favour of capital. For an effective response, the Left must break with Europeanist ideology. It must propose an alternative programme, rejecting the EMU and advocating social and economic transformation which would reverse neoliberalism in the interests of labour. (shrink)

"Canada, like other industrial nations, is undergoing widespread social change at a faster pace than ever before. Many features of our basic institutions are being transformed and some of the values on which they were based are being weakened or swept away to be replaced by others. As this Royal Commission indicated in its first report, Challenges and Choices, the scope and implications of these changes call "into question basic assumptions, values, and institutions at every level of society, from the (...) shop floor to the cabinet room, to the international economic system," but while many values change, others endure."--. (shrink)

This book is a collection and reworking of research done by Pascal Salin since around 1990. Salin is an economist in the tradition of the Austrian school of economics. He emphasizes the centrality of individual choice in an uncertain world in which individual actions interact to produce spontaneous orders. But he is no mere conduit of established ideas. He also offers his own highly original insights honed after a lifetime as an economist, one who has earned the respect in which (...) he is now held by his peers worldwide. The book makes delightful reading. Salin covers a lot of ground in this book, mostly within the topics indicated by the title, though in the final two chapters he goes beyond these and into the foundations of economic science. The book is divided into five parts: (1) firms, markets and competition, (2) globalization and international economic problems, (3) monetary integration, (4) money, finance and economic policies, and (5) foundations of economic theory. (shrink)

The recent crisis of the Eurozone has led scholars and activists to critically consider the ordoliberal tradition of thought, in order to underline the ideological and effective primacy of the German interests within EU’s economic and monetary policies. Starting from this last widespread assertion, the author, after having recalled the differences which exist among the liberalism of the “Freiburg School” and that of the “Vienna School”, analyzes and discusses the principles of Walter Eucken’s economic policy, in particular, (...) the “constitutive principles” and the “regulative principles” of his Wettbewerbsordnung. Nevertheless, if it is true that the ordoliberal concept of competition is based on a Leistungsprinzip which requires a starker Staat, how does the Wettbewerbsordnung coexist with EU’s systems of governance? Actually, says the author, the multilevel European governance seems to be better understood if intended as a “hybrid”, with respect to which not always Ordoliberalism plays a role consistent with its tradition. (shrink)

We examine how opinion on a controversial real-world issue shifts as a function of reading relevant arguments and engaging in a specific mental simulation about a future, fictional state of affairs involving the target issue. Individuals thought either counterfactually about a future event (“if only X had not happened …”) or semifactually about it (“even if X had not happened …”). In Experiment 1, as expected, individuals became more in favour of a course of action (the electronic tagging of children) (...) after reading relevant supporting arguments. They also became more in favour after they thought counterfactually how a negative future event could have been avoided if only electronic tagging had not been banned some years earlier. The effects of argument relevance and type of mental simulation were additive. Using a similar procedure but a different target issue (whether the UK should join the Economic Monetary Union), Experiment 2 confirmed that the type of mental simulation exerts a substantial effect on the impact of relevant arguments. Much weaker effects arose when the mental simulation was not relevant to the target issue. We set and discuss our results in terms of dual-processing theory. (shrink)

This textbook examines how far economic integration in Europe has come. Is it still more useful to view the European Union countries as a set of individual economies, or does it now make more sense to look at them as forming one larger economy? The book attempts to answer this question in a range of expert contributions dealing with all the major aspects of European economic integration, including trade, economic growth, demographics, labour markets, industrial structures, foreign (...) direct investment, monetary integration and eastern enlargement. (shrink)

Werner Bonefeld is Emeritus Professor in the Department of Politics at the University of York, UK, and Adjunct Professor at the Postgraduate School ZRC SAZU (Ljubljana, Slovenia). He has published on topics as varied as the development of the British state during the 1980s and 1990s, Europe’s monetary union, ordoliberalism, and Marx’s critique of political economy. A ground-breaking critical theorist, Bonefeld’s contribution to an ‘open’ Marxism developed a rigorous critique of capitalist social relations without omitting the significant themes (...) of lived experience and class antagonism. The following interview marks the publication of a recent monograph titled A Critical Theory of Economic Compulsion: Wealth, Suffering, Negation. Bonefeld discusses his reading of Frankfurt School critical theory and its relation to heterodox and open Marxist social theory with Alex Alvarez Taylor, whose research focuses on early critical theory. (shrink)

This book presents a political understanding of socio-economic rights by contextualising constitution-makers' and judges' decision-making in terms of Ireland's rich history of people's struggles for justice 'from below' between 1848 and the present. Its theoretical framework incorporates critical legal studies and world-systems analysis. It performs a critical discourse analysis of constitution-making processes in 1922 and 1937 as well as subsequent property, trade union, family and welfare rights case law. It traces the marginalisation of socio-economic rights in Ireland (...) from specific, local and institutional factors to the contested balance of core-peripheral and social relations in the world-system. The book demonstrates the endurance of ideological understandings of state constitutionalism as inherently neutral between interests. Unemployed marches, housing protestors and striking workers, however, provided important challenges and oppositional discourses. Recognising these enduring forms of power and ideology is vital if we are to assess critically the possibilities and limits of contesting socio-economic rights today. (shrink)

Human activities have become more and more internationalized in the course of recent decades and globalization is a major fact of our time. Latest changes in economics, politics and technology are not always well understood and well accepted. Many people consider globalization as detrimental since it is assumed that it destroys jobs in developed countries because of the alleged competition from low-wage countries, and that it could lead to a “standardization” of lifestyles and even cultures. Some wrongly believe that given (...) these dangers, the economic globalization should be accompanied by globalized economic policies, that actually curb freedom of trade. Our article clarifies the meaning of freedom of trade and competition, underlines the fact that there are two radically opposed approaches to integration and discusses, finally, accomplishments or projects concerning taxation, regulations, monetary integration and banking union. (shrink)

Dans cet article, nous proposons une analyse critique du nouveau consensus monétaire (NMC) d’un point de vue méthodologique, afin d’évaluer sa pertinence. Bien que les mantras du consensus ne soient pas contestables en tant que tels, nous soutenons l’idée que les fondements méthodologiques du NMC expliquent son échec paradigmatique à prévoir la crise financière de 2008, et à constituer une source d’inspiration fiable pour les politiques post-crise 2008. Nous mettons particulièrement l’accent sur la nature problématique des modèles pré-crise 2008. Nous (...) concluons que le nouveau consensus monétaire a cessé d’être pertinent plus de dix ans après le début de la crise mondiale. (shrink)

Eighty years ago, in his Vienna lecture, Husserl wrote: “The European nations are sick; Europe itself, they say, is in critical condition.” Asserting the “obvious difference … between health and sickness … for societies, for peoples, for states,” he turned his questioning to Europe. How do we distinguish between its “healthy growth and decline”? Can we find within Europe a recognizable shape, an identifying characteristic whose loss would be a symptom of illness? Then as now, such questions turn on the (...) objective identity of Europe and the disturbances that rend this. Such disturbances recall the most basic sense of crisis, which is that of a dividing or separating. In what follows, I shall analyze the crisis of Europe in this fundamental sense. The context of my remarks will be its current division. This is the divide between economic and political senses of its identity as a monetary union, I shall begin with a psychological and phenomenological description of the splitting of self-identity and then attempt to apply this to Europe’s current situation. (shrink)

Hermeneutics has become a major topic of debate throughout the scholarly community. What has been called the "interpretive turn" has led to interesting new approaches in both the human and social sciences, and has helped to transform divided disciplines by bringing them closer together. Yet one of the largest and most important social sciences economics has so far been almost completely left out of the transformation. Economics and Hermeneutics takes a significant step towards filling this gap by introducing scholars on (...) both sides of the divide to ways that hermeneutics might help economists address some of their most important problems. Among the topics addressed are entrepreneurship, price theory, rational expectations, monetary theory, welfare economics, and economic policy. The approaches to economics represented include the Austrian school, McCloskey's "rhetoric" approach, Marxian critical theory and institutionalism. (shrink)

The economic and debt crisis threaten many eurozone countries and the very existence of the common currency, the euro. The crisis has meant that some special mechanisms have had to be created (EFSF, ESM) and the introduction of special procedures in heavily indebted countries. The deepening of the crisis and the economic recession in the euro area have resulted in the growth of nationalism and anti-European sentiments in EU member states. Resolving the crisis, however, requires further convergence of (...) the eurozone countries, the formation of a fiscal union and a banking union. At the same time, the crisis has shown that the grand theories of European integration, neo-functionalism and liberal intergovernmentalism, have failed to provide answers to the questions raised by the crisis, and this has led to the growing importance of social constructivism. (shrink)

Monetary intelligence theory asserts that individuals apply their money attitude to frame critical concerns in the context and strategically select certain options to achieve financial goals and ultimate happiness. This study explores the dark side of monetary Intelligence and behavioral economics—dishonesty. Dishonesty, a risky prospect, involves cost–benefit analysis of self-interest. We frame good or bad barrels in the environmental context as a proxy of high or low probability of getting caught for dishonesty, respectively. We theorize: The magnitude and (...) intensity of the relationship between love of money and dishonest prospect may reveal how individuals frame dishonesty in the context of two levels of subjective norm—perceived corporate ethical values at the micro-level and Corruption Perceptions Index at the macro-level, collected from multiple sources. Based on 6382 managers in 31 geopolitical entities across six continents, our cross-level three-way interaction effect illustrates: As expected, managers in good barrels, mixed barrels, and bad barrels display low, medium, and high magnitude of dishonesty, respectively. With high CEV, the intensity is the same across cultures. With low CEV, the intensity of dishonesty is the highest in high CPI entities —the Enron Effect, but the lowest in low CPI entities. CPI has a strong impact on the magnitude of dishonesty, whereas CEV has a strong impact on the intensity of dishonesty. We demonstrate dishonesty in light of monetary values and two frames of social norm, revealing critical implications to the field of behavioral economics and business ethics. (shrink)

Coastal protection is crucial to human development since the ocean has many values associated with the economy, ecosystem, and culture. However, most ocean protecting efforts are currently ineffective due to the burdens of finance, lack of appropriate management, and international cooperation regimes. For aiding bottom-up initiatives for ocean protection support, this study employed the Mindsponge Theory to examine how the public’s perceived economic and cultural values influence their willingness to support actions to protect the ocean. Analyzing the European-Union-Horizon-2020-funded (...) dataset of 709 respondents from 42 countries, we discovered that perceived economic values have negative effects on the tendency of ocean protection supports (i.e., food, transportation, renewable energy, oil and gas, and recreation). In contrast, certain perceived cultural values can help increase the willingness to do so (i.e., mental well-being and sense of identity). However, the effects of perceived cultural values are only moderately reliable. These findings suggest that designing cultural information delivery campaigns can help promote coastal reserve supports, such as fundraisings and preserving the oceans from the community. (shrink)

Slight absolute changes in the Shanghai Stock Exchange Index (SHSE) corresponded to the city’s immediate increases in coronary heart disease deaths and stroke deaths. Significant fluctuations in the Shenzhen Stock Exchange Index (SZSE) corresponded to the country’s minor, delayed death rates. Investors deal with money, greed, stock volatility, and risky decision-making. Happy people live longer and better. We ask the following question: Who are the investors with the highest and most sustainable stock happiness, and why? Monetary wisdom asserts: Investors (...) apply their deep-rooted values (avaricious love-of-money aspiration and locus of control, Level 2) as a lens to frame critical concerns in the proximal-immediate (Shanghai Stock Exchange Index changes, Level 1) and the omnibus-distal contexts (domicile: city vs. country, Level 2) to maximize expected utility (portfolio changes, Level 1) and ultimate serenity (stock happiness, Level 1). We collected multilevel data—the longitudinal SHSE and 227 private investors’ daily stock happiness and portfolio changes for 36 consecutive trading days in four regions of China. Investors had an average liquid asset of $76,747.41 and $54,660.85 in stocks. This study is not a “one-shot” game with “nothing at stake.” We classified Shanghai and Beijing as the city and Shenzhen and Chongqing as the country. Our cross-level 3-D visualization reveals that regardless of SHSE volatility, investors with low aspiration, external control, and country domicile enjoy the highest and most sustainable stock happiness with minimum fluctuations. Independently, investors with low aspiration, external control, and country domicile tend to make fewer portfolio changes than their counterparts. Behaviorally, less is more, debunking the myth—risky decisions excite stock happiness. Our longitudinal study expands prospect theory, incorporates attitude toward money, and makes robust contributions to behavioral economics and business ethics. We help investors and ordinary citizens make happy, healthy, and wealthy decisions. Most importantly, the life you save may be your own. (shrink)

New Approaches to Monetary Economics brings together presentations of innovative research in the field of monetary economics. Much of this research develops and applies approaches to modelling financial intermediation, aggregate fluctuations, monetary aggregation and transactions-motivated monetary equilibrium. The contents of this volume comprise the proceedings of the second in a conference series entitled International Symposia in Economic Theory and Econometrics. This conference was held in 1985 at the IC2 Institute at the University of Texas at (...) Austin. The symposia in this series are sponsored by the IC2 Institute and the RGK Foundation. New Approaches to Monetary Economics, edited by Professors William A. Barnett and Kenneth J. Singleton, consists of five parts. Part I examines transactions-motivated monetary holding in general equilibrium; Part II, financial intermediation; Part III, monetary aggregation theory, Part IV, issues in aggregate fluctuation; and Part V, theoretical issues in the foundations of monetary economics and macroeconomics. (shrink)

Corporate governance in the European Union (EU) has been traditionally seen as a problem of harmonizing or co-ordinating national systems. Here the focus is on the interactions between corporate governance on the one hand and macroeconomic policy on the other. It is argued that the function of corporate governance is a process determined by a structurally embedded dynamic game between major stakeholders and the corporation. The article argues that Economic Monetary Union (EMU) institutions and policymaking, as (...) elements of the institutional environment in which this game is embedded, determine particular parties’ bargaining power and through this the outcome of the corporate governance game and its trajectory. The main focus is on the bargains between labour and financial capital with the corporation, which is mostly destabilized in the EU–EMU environment. The findings carry an important message for post-crisis restructuring. (shrink)

Organizational corruption has recently attracted considerable scholarly attention, especially since its devastating effects following recent major corporate scandals, the worldwide economic crisis of 2009, and the current European Union monetary crisis. This paper is based on the analysis of three distinct, yet contextually related, case studies in a European Union member state: (a) an incident of corruption by a minister in an adjudicative role, (b) widespread financial misreporting and perjury within an organization, and (c) abuse of (...) due process and obstruction of justice by civil servants within a ministry. These cases serve to illustrate, for the first time, Aguilera and Vadera’s (in J Bus Ethics 77:431–449, 2008 ) framework of organizational corruption, which relates distinct types of a corrupter’s opportunity, motivation, and justification with the type of corruption present in the organization. Furthermore, the data suggest how the framework may be extended and reveal conceptual issues that require reconciliation. This study attempts such reconciliations and offers some suggestions on how the findings may be utilized by policy reformers or corruption controllers. (shrink)

Monetary Intelligence theory asserts that individuals apply their money attitude to frame critical concerns in the context and strategically select certain options to achieve financial goals and ultimate happiness. This study explores the bright side of Monetary Intelligence and behavioral economics, frames money attitude in the context of pay and life satisfaction, and controls money at the macro-level and micro-level. We theorize: Managers with low love of money motive but high stewardship behavior will have high subjective well-being: pay (...) satisfaction and quality of life. Data collected from 6586 managers in 32 cultures across six continents support our theory. Interestingly, GDP per capita is related to life satisfaction, but not to pay satisfaction. Individual income is related to both life and pay satisfaction. Neither GDP nor income is related to Happiness. Our theoretical model across three GDP groups offers new discoveries: In high GDP entities, “high income” not only reduces aspirations—“Rich, Motivator, and Power,” but also promotes stewardship behavior—“Budget, Give/Donate, and Contribute” and appreciation of “Achievement.” After controlling income, we demonstrate the bright side of Monetary Intelligence: Low love of money motive but high stewardship behavior define Monetary Intelligence. “Good apples enjoy good quality of life in good barrels.” This notion adds another explanation to managers’ low magnitude of dishonesty in entities with high Corruption Perceptions Index. In low GDP entities, high income is related to poor Budgeting skills and escalated Happiness. These managers experience equal satisfaction with pay and life. We add a new vocabulary to the conversation of monetary intelligence, income, GDP, happiness, subjective well-being, good and bad apples and barrels, corruption, and behavioral ethics. (shrink)

Although the history of centrally planned economies has been widely studied, the development of socialist thinking on the subject has remained largely uncharted. In this 1991 work, Pekka Sutela presents a detailed analysis of Soviet economic thought and theory. Dr Sutela traces the competing currents in the Marxist tradition of socialist economies from the Revolution to the present day. In particular he shows how the Gorbachev economic reform programme of 1987 rose from the work of Nobel Prize economist (...) L. V. Kantorovich and his followers. However, this programme failed and the author explains in some detail why this happened. Since then, Soviet economists have tried to abandon their traditional theory of central planning and move along the path and long established contacts with leading Soviet economists, Pekka Sutela is able to show how Soviet economic thinking has moved from dogmatism through reformism to pragmatism. (shrink)

This paper attempts to quantify the development of the key monetary values and changes in monetary trust that occurred during Roman times under ever-increasing prices. To track those developments, the paper introduces a minimal-parameter model that builds on available numismatic data relating to the Roman landmark coinages and on papyrological findings. The modelling produces a series of graphs which clearly signal the occurrence of a later crisis of confidence. It is argued that the monetary measures typically taken (...) by the Roman authorities actually fostered a crisis of confidence, and even made it inevitable. (shrink)

Scholarship on gender and the European Union has consistently pointed out that EU gender equality policies have always been embedded in the logic of the market and that the economic framing has had negative impacts on the content and concepts of these policies. This article provides novel insights into this discussion by combining a discursive approach focused on framings with insights of feminist economists and examining how the relationship between gender equality and the economy has been conceptualized in (...) EU policy documents from the 1980s up until the present day. The article identifies the key actors and processes behind the escalation of economic arguments for gender equality and makes visible the economic assumptions that underpin EU gender equality policy. It argues that in recent years the European institutions have intentionally developed and propagated a market-oriented gender equality discourse, the economic case for gender equality, which highlights the macroeconomic benefits of gender equality. The economic case reaffirms the gender-biased assumptions of neoclassical economic theory and legitimizes the EU’s current economic priorities and policies, many of which are detrimental to gender equality. The European Commission represents the argument that gender equality contributes to economic growth as an innovative way to promote gender equality. However, the economic case represents a risk for gender equality advocates, because it may tame the emerging feminist criticism of the EU’s economic policies and governance. (shrink)

The key theoretical idea underlying this article is that an institutional equilibrium in the economic domain can be destroyed or transformed by rapid belief changes in the political domain. Events circa 1776, 1787, and 1860 in the United States are all examined in an attempt to understand the interaction between these economic and political transformations. More explicitly, the author views the economic domain as fundamentally three dimensional, characterized by the use of land, labor, and capital. In contrast (...) to general economic reasoning, he considers the equilibrium in this domain to be institutional, rather than the consequence of the interplay of economic forces. Threats, generated in the political domain, have consequences in the economic domain, and these in turn induce belief changes in the political domain. Such belief changes may bring about war, or constitutional disequilibrium, leading possibly to a new political economic stasis. (shrink)

"This book contains ideas to develop interdisciplinary and transdisciplinary views on economy and society. It aims to disseminate heterodox ideas on various subjects related to economics and global society. The book is organised in six parts. Part 1 contains the key lectures of Backhaus on the concept of state sciences and of Klamer on the importance of culture for economics. Parts 2- 6 contain successively contributions in the areas of economic paradigms and theories, population and society, corporate issues, environment, (...) and international relations. Examples of the content are: - the changes of family life cycles due to the rise of non-traditional households; - subjective and objective inflation rates after the introduction of the Euro; - the economics of genetic engineering; - the contribution of foreign direct investment to the economic development of host countries; - the inaccuracy of economic models applied in places characterized by extreme income disparities; - the improvement of political and corporate governance; - evolutionary thinking and emission trading; - freedom and order in the European Union; - the reform of social policy in Europe. The book provides interesting creative multi-disciplinary ideas with respect to various topical issues concerning the contemporary global society. It is highly recommended for economists and social scientists in search of broad views on social science and society.". (shrink)

On the dominant economic approach to environmental policy, environmental goods are conceptualised as forms of capital that provide services for human well-being. These services are assigned a monetary value to be weighed against the values of other goods and services. David Wiggins has offered a set of arguments against central assumptions about the nature of well-being, practical reason and ethical deliberation that underpin this dominant economic approach. In this paper I outline these arguments and consider their implications (...) for understanding ethical demands across generations. The paper focuses, in particular, on their implications for understanding the nature and requirements of sustainability. (shrink)