Rowman and Littlefield International


The Political Costs of Monetary Union in Europe

By Jonathon Moses

Publication Date: Feb 2017

Pages 238

ECPR Press

Hardback 9781785522567
£50.00 €70.00 $80.00

This book examines the political costs of monetary union in Europe. It does so by gauging the degree to which four small European states - Iceland, Latvia, Hungary and Ireland - employed their monetary policies in response to the financial crisis. Contrary to popular and academic perception, Moses finds that small states in Europe still enjoy monetary policy autonomy, and this autonomy was used to prioritise the needs of domestic constituents over those of international markets. Eurozone member states, by contrast, pursued policies that prioritised the (long-term) needs of international lenders and European institutions, at the (short-term) expense of their own constituents. By illustrating the degree to which monetary policy autonomy still plays an effective role in responding to economic shocks, this book documents the substantial sacrifices that states have made in joining a suboptimum currency area. These are the political costs of monetary union in Europe.

Table of Contents

List of Figures and Tables xi

List of Abbreviations xv

Preface and Acknowledgements xix

Chapter One – Bound to the Mast 1

Chapter Two – The Political Costs of Monetary Union 17

Chapter Three – Debt and Distribution 37

Chapter Four – Iceland 59

Chapter Five – Ireland 87

Chapter Six – Latvia 117

Chapter Seven – Hungary 147

Chapter Eight – Conclusion 171

References 185

Index 205

Jonathon W. Moses is a professor of political science at the Norwegian University of Science and Technology (NTNU), where he has taught since 1993. Moses has published several books including Emigration and Development (2011), Ways of Knowing (2007), International Migration: Globalization’s Last Frontier (2006), and Norwegian Catch-up: Development and Globalization before World War II (2005). Jonathon Moses is a co-editor of European Political Science (EPS). Among his research interests are globalization, international migration, social democracy, and the European Union. His articles have appeared in World Development, The Journal of Common Market Studies, and Politics and Society.

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