Governing by Panic
The Politics of the Eurozone Crisis
Bibliographic Data
| ID | 2317348 |
|---|---|
| Authors | David M Woodruff (London School of Economics and Political Science, corresponding author) |
| Year | 2016 |
| Volume | 44 |
| Issue | 1 |
| Pages | 81-116 |
| Publication date | 2016-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Latin American Politics and Society (JOURNAL) |
| Journal identifiers | ISSN: 1531-426X • E-ISSN: 1548-2456 |
| Publisher | SAGE Publications Inc (PUBLISHER) |
| DOI | 10.1177/0032329215617465 |
| OpenAlex | W2601402697 |
| Language | EN |
| Citations received | 25 |
| References cited | 36 |
The Eurozone's reaction to the crisis beginning in late 2008 involved not only efforts to mitigate the arbitrarily destructive effects of markets but also vigorous pursuit of policies aimed at austerity and deflation. To explain this paradoxical outcome, I build on Karl Polanyi's account of a similar deadlock in the 1930s. Polanyi argued that a society-protecting response to malfunctioning markets was limited under the gold standard by the prospect of currency panic, which bankers used to push for austerity, deflationary policies, and labor's political marginalization. I reconstruct Polanyi's 'governing by panic' theory to explain Eurozone policy during three key episodes of sovereign bond market panic in 2010-12. By threatening to allow financial panics to continue, the European Central Bank promoted policies and institutional changes aimed at austerity and deflation, limiting the protective response. Germany's Ordoliberalism, and its weight in European affairs, contributed to the credibility of this threat
Austerity · Credibility · Currency · Deflation · Economic policy · Economics · European debt crisis · European integration · European union · Financial crisis · Financial market · Keynesian economics · Monetary economics · Monetary policy · Panic · Political economy · Political science · Politics · Sovereignty · Finance · Global Financial Crisis and Policies · Global Financial Regulation and Crises · Housing, Finance, and Neoliberalism
Upholding neoliberal dogmas
Risk Entanglement in the Finance-State Nexus
Conflicting dynamics of public attitudes toward austerity
Post-democracy and institutionalized austerity in France
Credible interventionism
Doing Away with the Sovereign
One-size-fits-some! Capitalist diversity, sectoral interests and monetary policy in the euro area
More power, less influence
Rattling Europe’s ordoliberal ‘iron cage’
Benchmarking labour competitiveness
Elite fidelity in Europe’s crisis management regime
Structure, Agency, and Structural Reform
From lever to club? Conditionality in the European Union during the financial crisis
Dysfunction and Pathology in Brussels
Conditionality as an Instrument of European Governance – Cases, Characteristics and Types
Meeting the world’s demand for safe assets? Macroeconomic policy and the international status of the euro after the crisis
Authoritarian Neoliberalism in Europe
Monetary-policy delegation for democrats
Planning laissez-faire
Europe's fast- and slow-burning crises
Constitutionalizing the EU in an Age of Emergencies
The Political Economy of the SPD Reconsidered
The ideational foundations of social democratic austerity in the context of the great recession
Karl Polanyi in an Age of Uncertainty
Neoliberal ideas of government and the political empowerment of economists in advanced nation-states
The general theory of employment, interest, and money
The Great Transformation
The New Politics of Austerity
Two Logics of Collective Action (1980)
The missing link. Labour unions, central banks and monetary integration in Europe 1
Ordoliberalismus als ökonomische Ordnungstheologie
Rule-Consequentialism
Heinrich Bruning and the Dissolution of the Weimar Republic
From Sick Man of Europe to Economic Superstar
Good Inflation, Bad Inflation
European Integration in the Euro Crisis
Rules Rather than Discretion
The Gold Standard Illusion
A ‘Bankers’ Ramp'? Financiers and the British political crisis of August 1931
The European Union after the Maastricht Decision
Constitutionalizing the Economy
Mispricing of Sovereign Risk and Macroeconomic Stability in the Eurozone
Leadership in Hard Times
Breaking with orthodoxy
Varieties of Liberalism
No Country for the Market
Between a Rock and a Hard Place
The Sterling-Dollar-Franc Triangle
Party Servants, Ideologues or Regional Representatives? The German Länder and the Reform of Federalism
Structures Do Not Come with an Instruction Sheet
The clash of Titans
Shocking Intellectual Austerity
Federal Reform under the Grand Coalition
The German Model Revisited
Saving the Banks
Intergovernmentalism and Its Limits
The Political Power of Economic Ideas
The Soft Budget Constraint
The Limits of Delegation
Boom, Gloom, Doom
| Unique citing works | 25 |
|---|---|
| Citations per year | 2,78 |
| Citation span | 2017 - 2026 (10) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 25 |