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A Europe of creditor and debtor states

Explaining the north/south divide in the Eurozone

Bibliographic Data

ID8041576
AuthorsSofía Pérez (0000-0002-3294-9662, Boston University, corresponding author)
Year2019
Volume42
Issue5
Pages989-1014
Publication date2019-04-29
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueWest European Politics (JOURNAL)
Journal identifiersISSN: 0140-2382 • E-ISSN: 1743-9655
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/01402382.2019.1573403
OpenAlexW2942911270
LanguageEN
Citations received18
References cited46

The divide in the Eurozone between a small set of core economies with strong international financial positions (North) and a set of debtor states that show periodic vulnerability in international financial markets (South) remains a core feature of the area. Our understanding of that schism, however, remains incomplete. Comparative political economists have emphasised differences in labour market institutions – in particular wage setting – to explain the split. This article takes issue with that view, suggesting that the case for a wage-driven explanation of creditor and debtor states’ positions in the Eurozone remains weak. Instead, it emphasises the role of capital flows and the uneven impact these had on domestic demand across Eurozone states both before and after 2008. This macro-economically centred explanation – in which financial, rather than labour market, dynamics play the central role – has important implications for our evaluation of Eurozone reforms

Capital (architecture · Creditor · Debt · Debtor · Economics · European debt crisis · European integration · European union · Geography · International economics · Macroeconomics · Market economy · Wage · Economic Theory and Policy · Global Financial Crisis and Policies · Social Policy and Reform Studies

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Unique citing works18
Citations per year2,57
Citation span2019 - 2026 (8)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 18
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