Capital Markets and the Unification of Europe

Bibliographic Data

ID8042847
AuthorsHans O Schmitt (University of Wisconsin–Madison, corresponding author)
Year1968
Volume20
Issue2
Pages228-244
Publication date1968-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueWorld Politics (JOURNAL)
Journal identifiersISSN: 0043-8871 • E-ISSN: 1086-3338
PublisherProject MUSE (PUBLISHER • US)
DOI10.2307/2009797
OpenAlexW2087448409
LanguageEN
Citations received7
References cited8

The expectation that a customs union in Europe will ultimately lead to political unification is based on the so-called spillover effect. This effect operates whenever any step toward integration creates new needs and fresh demands to proceed further in the same direction. Thus a customs union may create pressures to integrate not only commodity markets but capital markets as well. An integration of capital markets in turn may necessitate currency unification for its effective functioning, and a unified currency finally may imply a pooling of sovereignties sufficiently complete to destroy the separate identities of the participating nation-states. The process could also work in the opposite direction: from an insistence on the integrity of the nation-state to an ultimate rejection of the customs union itself

Capital (architecture · Capital market · Commodity · Currency · Customs union · Economic system · Economic union · Economics · European union · International economics · International trade · Macroeconomics · Market economy · Political science · Politics · Pooling · Single market · Spillover effect · Unification · Work (physics · Engineering · European Monetary and Fiscal Policies · Finance · Global Financial Crisis and Policies · Law

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