This article focuses on the dynamics and interplay of meaning, emotions, and power in institutional work. Based on an empirical study, we explore and elaborate on the rhetorical strategies of emotion ...work that institutional actors employ to mobilize emotions for discursive institutional work. In an empirical context where a powerful institutional actor is tasked with creating support and acceptance for a new political and economic institution, we identify three rhetorical strategies of emotion work: eclipsing, diverting and evoking emotions. These strategies are employed to arouse, regulate, and organize emotions that underpin legitimacy judgments and drive resistance among field constituents. We find that actors exercise influence and engage in overt forms of emotion work by evoking shame and pride to sanction and reward particular expedient ways of thinking and feeling about the new institutional arrangements. More importantly, however, the study shows that they also engage in strategies of discursive institutional work that seek to exert power—force and influence—in more subtle ways by eclipsing and diverting the collective fears, anxieties, and moral indignation that drive resistance and breed negative legitimacy evaluations. Overall, the study suggests that emotions play an important role in institutional work associated with creating institutions, not only via “pathos appeals” but also as tools of discursive, cultural-cognitive meaning work and in the exercise of power in the field.
Do bond investors demand credit quality or liquidity? The answer is both, but at different times and for different reasons. Using data on the Euro-area government bond market, which features a unique ...negative correlation between credit quality and liquidity across countries, we show that the bulk of sovereign yield spreads is explained by differences in credit quality, though liquidity plays a nontrivial role, especially for low credit risk countries and during times of heightened market uncertainty. In contrast, the destination of large flows into the bond market is determined almost exclusively by liquidity. We conclude that credit quality matters for bond valuation but that, in times of market stress, investors chase liquidity, not credit quality.
This survey of business cycle synchronization in the European monetary union focuses on two issues: have business cycles become more similar, and which factors drive business cycle synchronization. ...We conclude that business cycles in the euro area have gone through periods of both convergence and divergence. Still, there is quite some evidence that during the 1990s business cycle synchronization in the euro area has increased. Higher trade intensity is found to lead to more synchronization, but the point estimates vary widely. The evidence for other factors affecting business cycle synchronization is very mixed.
Dirk Meyer und Arne Hansen, Helmut-Schmidt-Universität, Universität der Bundeswehr Hamburg, sehen den Fortbestand der Währungsunion durch vorhandene Instabilitäten gefährdet. Damit die ...Euro-Währungsunion nicht endet, sei eine Neuordnung im Rahmen eines Verfassungskonvents unumgänglich. Hierfür wären eine glaubwürdige Re-Institutionalisierung des Bailout-Verbots und des Verbots der monetären Staatsfinanzierung, eine Besicherung der TARGET2-Kredite, Regeln eines geordneten Euro-Austritts und Parallelwährungen die Stichworte.
This paper utilizes a Structural Vector Autoregressive model (SVAR) to explore the intricacies of monetary policy and inflation dynamics in the Eurozone. When examining conventional monetary policy, ...impulse reactions reveal a positive price response to positive interest rate innovations, contrary to theory, thus indicating a "price puzzle." However, the inclusion of commodity prices and exchange rates in the model appears to effectively mitigate this puzzle. Given the European Central Bank's (ECB) extensive use of unconventional monetary policy tools, investigating the impact of external shocks on the ECB's total assets is of particular significance. Parallel insights emerge when transitioning to a model where the external shock corresponds to the ECB's unconventional monetary policy.
The paper discusses the problem of the Southern European (SE) capitalism and its difficult path into the EMU (European Monetary Union), looking at the remote causes of the crisis that hit these ...economies. For this reason, we consider European countries as a set of asymmetrically integrated variety of capitalism. The institutional configuration chosen by Europe to aggregate the many varieties of capitalism not only reduced the political autonomy of the single states, but effectively hindered the specific coordination mechanism of Southern European (SE) capitalism which was importantly based on state intervention as a structural element and on inflationary policies. Despite the deep market-oriented reforms this change caused both structural and macroeconomic unbalances. The aim of the paper is to integrate some principles of the variety of capitalism and the dynamics of institutional change with some insights inspired by the work of Arrighi to supply a synthetic and 'alternative' perspective on the difficult role that Southern countries are experiencing in Europe.
In this paper, we propose a novel concept of correlation-based stable networks to empirically investigate the dynamic integration and network structure of the European Monetary Union (EMU) sovereign ...bond markets. The obtained results uncover a high degree of market integration between sample markets over the period preceding the recent financial crises, while segmentation is found afterwards. The stable network analysis shows, for its part, the existence of two different network structures before and after the onset of the European debt crisis, where the in-crisis network structure is characterized by two groups of countries with respect to their fiscal performance. In particular, Belgium is the unique vertex connecting the two groups, making it the channel for shock transmission in the event of worsening debt crisis in the EMU.
An extensive literature praises economic integration and monetary unions as powerful means for economic convergence between, and the growth of, nations. Several potential factors have been flagged ...for successful economic convergence, such as labor availability and mobility and the role of initial levels of development (for positive business contagion effects). However, the relevance of this literature can be read differently in the context of a failed monetary union: the Escudo Zone Monetary Union (EZMU, 1963-1971), where policies key for sustainability were in place. This article investigates the operation of the EZMU and examines the important factors in its demise, thereby contributing to the discussion of (un)sustainability of convergence and economic integration.
We examine the influence of the European Monetary Union (EMU) on the dynamic process of stock market integration over the period 2 January 1989–29 May 2003 using a bivariate EGARCH framework with ...time-varying conditional correlations. We find that there has been a clear regime shift in European stock market integration with the introduction of the EMU. The EMU has been necessary for stock market integration as unidirectional causality was found. Linear systems regression analysis shows that the increase in both regional and global stock market integration over this period was significantly driven in part, by macroeconomic convergence associated with the introduction of the EMU and financial development levels.
Winners and losers from the €uro Puzzello, Laura; Gomis-Porqueras, Pedro
European economic review,
09/2018, Letnik:
108
Journal Article
Recenzirano
Using the synthetic control method, this paper estimates the effect of having joined the monetary union on the income per capita of six early adopters of the euro. Our estimates suggest that while ...the income per capita of Belgium, France, Germany and Italy would have been higher without the euro, that of Ireland would have been considerably lower. In contrast, the Netherlands would have been as well off without the euro. We show that these estimates are not contingent on our choice of baseline control groups, growth predictors and pre-treatment period. In addition, we use the insights from the literature on the economic determinants of the costs and benefits of monetary unions to explain our estimates. We find that early euro adopters with a business cycle more synchronized to that of the union and more open to intra-union trade or migration, lost less or gained more from the euro. A key role in increasing post-euro income losses of union members has been played by the integration of capital markets.